Home Sale Issue

[Joel V]

My client inherited a house and sold it shortly after. I've typed the information into the home sale worksheet and cannot figure out how to get the program to not say "Main home sale" on form 8949 when I go to print the return. I have tried numerous things on the home sale worksheet and am not having any success. In part II, line 9 I clicked No to the question "Do you wish to use the available main home sale exclusion for sales..." and that is not working either. Any suggestions would be appreciated. 

[rbynaker]

I think the Home Sale Wks is just for sales of a principal residence.  I would delete all of that and just report this on Form 8949 Part II, Check Box (F).  In ProSeries I think you have to pretend you have a 1099-B, enter the sale that way and then indicate the sale was NOT on a 1099-B (which seems anything but INTUITive!)

A few tidbits, the holding period for inherited property is Long-Term.  If there was personal use (i.e. some family member lived their after the deceased passed) and there's a loss it's probably a personal non-deductible loss so you may need to make an "L" adjustment in columns (f)/(g).  If it was unoccupied while being cleaned out and sold you may have a deductible capital loss.  Gains are taxable.

[Norman2001]

Don't use the home sale worksheet. Use the Form 1099-B Worksheet.

[Terry53029]

Just want to point out that there may be a step up in basis. An inherited house with no personal use is same as long term investment property reported on schedule D (as was pointed out use 1099B worksheet)

[BobKamman]

@rbynaker   It has come to our attention that you are questioning our “1099-B Worksheet,” on which there is a question “Reported on Form 1099-B?” that requires a Yes or No answer.

Thank you for your comment. We will consider changing the name to “1099-B or Not Worksheet,” if we receive 185 votes to do so before the end of the year.