form 8949

[taxes96786]

Client inherited residential property in July 2018. It has not been occupied since then. Major repairs were needed...then Covid hit. Property sold in 2021.

IRS instructions say to report on F8949 and then Sch D. 1099-S does not show basis but I do have it along with expenses for repairs and sale. Ori Basis 726,400.  Repairs/Improvements exceed 200K  1099-S gross proceeds is 897K. 

I can't find F8949 in my ProSeries forms list. Can I report the sale on Sch D and not start with F8949?  Can I use 1099-B to replace 1099-S?

In more than 20yrs of preparing returns I have never had to report sale of inherited home. I know to put inherited on date acquired. 

[sjrcpa]

Original basis doesn't matter. Start with date of death FMV and add improvements since then.

Yes use Schedule D/1099-B section for input.. I think once you say "not reported on 1099-B" it will flow to the 8949.

[Just-Lisa-Now- · Accepted solution]

Yes, just use the 1099B worksheet (scroll down past the brokerage info) to enter the transaction, dont worry about entering the actual 1099S.

[BobKamman]

You're planning on claiming a capital loss?  If the client claims it was never intended as a second home (for a year or two before Covid), then that's their story and they're sticking with it.  I would want to know more about the facts and circumstances.  

[taxes96786]

thanks...found where to enter it all.  When I said original basis I did mean the stepped up basis.

[taxes96786]

I know client well enough to know it was always intended to repair and sell.

Thanks for your help.