Question

How to report inherited rental property that I sold

Forum|Forum|7 years ago
June 6, 2019
1 reply
0 views

No text available

TurboTax Self Employed Online

Employee

If you did not keep the property as a rental but sold it once you inherited it, your basis in the property is "stepped up": It's based on what the property was worth at the time the owner died.

The basis of property inherited from a decedent is generally one of the following:

The fair market value (FMV) of the property on the date of the decedent's death.
The FMV of the property on the alternate valuation date if the executor of the estate chooses to use the alternate valuation.
Gifts & Inheritances - IRS.gov

To enter the sale of a second home, an inherited home, or inherited land:

Where do I enter the sale of a second home, an inherited home, or land?

These are entered in the investment section of TurboTax. Follow these instructions:

Open your return in TurboTax.
(To do this, sign in to TurboTax and click the orange Take me to my return button.)
In the search box, search for sold second home (use this exact phrase) and then click the "Jump to" link in the search results.
Answer Yes on the Did You Sell Any Investments in 2016? screen.
- If you land on the Here's the investment sales info we have so far screen, click Add More Sales.
Answer No to the 1099-B question.
On the next screen, select Second Home (choose this also for inherited homes) or Land. Click Continue.
Follow the on-screen instructions to completion.