Inherited house Capital Gains Gain/Loss Calculating incorrectly in TurboTax

Forum|Forum|1 year ago
March 11, 2025
2 replies
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I sold an inherited house from my parents last year 2024.

The Gross proceeds is: $82,667

The Cost Basis is: $76,667

The Selling Expense is: $9009

The math says I have a Loss of $3009 BUT.... TurboTax software shows it is $0.00

Am I doing something wrong or is there a bug in the TT software???

Thanks!

Steve

ThomasM125

You are not doing your calculation wrong but there is not a bug in the program. The loss you mention is not deductible, so the net gain/loss on the sale cannot be below $0. So, since there is a loss it is reported as $0.

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wallybirdAuthor

Where in the tax code can I find why this loss is not deductible?

Mike9241

if you reported it as a sale of a home, then the loss is not allowed. if you held it as an investment after inheriting it, then you can't use the sale of home worksheet. It would be reported as a sale of an investment like a stock.

wallybirdAuthor

So you have to pay capital gains tax on an inherited home not used as an investment if you have a gain (i kept it for 10 months after inheriting it and the Basis when inherited was less than what it sold for) but you can't claim a loss and get a tax credit on the loss?