When you enter the sale of the home, you will be asked for the cost basis of the property. You will enter the adjusted cost basis. Cost basis is the original purchase cost of the home plus the cost of improvements. For the property or portion of the property you inherited, the cost basis is the FMV of the property on the date of death.
To enter the sale in TurboTax>>
If you sold your main home or received a 1099-S:
- Sign in to TurboTax and select Pick up where you left off.
- Select Search, enter sale of home, and select the Jump to link in the search results.
- Answer Yes to Did you sell or have your home foreclosed in 2023?
- Enter the address of the home you sold on the next screen, and Continue.
- On the next screen, answer Yes to Did you receive a Form 1099-S that reported this sale? and enter the info from your 1099-S.
- On the next screens, follow the on-screen instructions to continue entering the info from your 1099-S.
Profits of up to $250,000 ($500,000 on a joint return) on the sale of your home may not be taxable if it was your primary residence for two of the last five years. We’ll ask you some questions about the sale of your home to see if you qualify.
For the Sale of a second home, click on this link. @zeishinkoku2020
IRS Q&A Stepped Up Basis
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