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March 25, 2023
Question

Capital Loss or Gain on Inherited Home

  • March 25, 2023
  • 1 reply
  • 0 views

I inherited a home after the death of my father.  It was his primary residence. It was sold shortly after and sat empty until the sale.  It was not used for personal use.  It sold for the fair value at the time of his death.  How should this be entered into Turbo Tax?  Are the sale expenses (realtor fees, etc.) deductible as a capital loss?  Thanks.

1 reply

March 25, 2023

Possibly.  If the home sold for Fair Market Value at the time of death, after adding Sales Expenses, you may have a Capital Loss.

 

The sale is reported in the Investments section. 

 

Here's details on Reporting Sale of Inherited Home.

 

@nelsonba 

nelsonbaAuthor
March 25, 2023

And I should select "Other" rather than "second home" for the type of investment, correct?

March 25, 2023

Yes, select Other as the type of investment.

 

Please see this TurboTax Help article if you need any more information. 

 

@nelsonba 

 

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