INHERITED HOME NOT USED PERSONALLY, VACANT FOR 3 YEARS

[ERICARAE731]

 I have this situation for a client. The inherited home sat vacant May 2021- 7/2/24.  I am using Proseries Basic and cannot seem to find anywhere in the 1099B worksheet to enter 'inherited' beside the date acquired, which of course creates a loss (with carryover). I do not see type of asset to choose 'inherited'.  I have a 1099-S.  I have the settlement statement for the sale.  I feel I am missing something. Any guidance would be greatly appreciated.  Thanks!

[rcooley25]

I could be wrong but I do not think  the word Inherited s needed at this point. Should the IRS question your basis that you show on the tax return be sure you can show the fir market value of the proerty on the day you inherited it

[rcooley25]

That was suppose to read fair market value and not fir.

[TaxGuyBill]

You seem to be doing it right.

Are you expecting it to show up differently on the tax return?  If so, how?

[dkh]

Instead of using the date when inherited you can type the word inherited

[ERICARAE731]

thank you.  no i expected that outcome, just wanted to others opinion.  appreciate the feedback.

[Ayeshaarian121]

If I'm not wrong, I think that inheritance is a deeply personal thing. You might need a good lawyer. He will give you good advice. I think he will be devoted to you.

[Tax_Lady]

Moreover, if vacant - no rental or personal use - in my opinion considered Investment Property so the sale of the property be listed on Schedule D, and as someone referred basis would be Date of Decedent's Death. Also if Capital Improvements were performed and completed may have some additional basis.

Remember:

1. A capital loss may be limited by $3,000.00 per year if there are no other capital gains to offset the loss;l

2. Capital losses retains to the individual who sustained those losses until they are used or upon death;

     a. Might be good time for Tax Harvesting Profits from Investment Portfolios..

Also, Basis Version of ProSeries may not have the advanced worksheet ProSeries Professional.

Yet, a time I used "Inherited" in the cost basis of that worksheet - it threw the tax return into a dizzy with IRS Identification Department and took nearly 3 years of sending documentation! Yet to be "fair" happened around Covid-19 Era....   So lesson learn, at this point just use date of death and be done.

Well wishes to your client and you!

[abctax55]

@Ayeshaarian121 

You might need a good lawyer.

After three years ????  

[IRonMaN]

Maybe he or she is just finishing up law school and is actively seeking clients 🤔

[abctax55]

That s/he will be 'devoted' to?  Hopelessly <w>