How to report house sale

[Catherine]

Sorry guys; brain-dead.  Between a nasty headache and computer problems ALL week I can't think.

Client inherited her dad's house.  Had to hold on to it for a while - clear it out, transfer title, fix the problems that made it impossible to sell, etc.  Finally sold it.  Form 4797?  Sch D/F8949?  Other?  

It was not held for investment.  It was not rented out.  She didn't live in it. She just had to wait to sell it (and while waiting paid mortgage, property taxes, minimal utility bills, and had much-needed repairs done including lead paint abatement).

[Gail in Virginia]

It was not business property so no to 4797.  I would report on 8949/Sch D.  Basis equal to value at DOD of dad plus expenses not deducted elsewhere. 

[jklcpa]

Sch D .

[Lion EA]

Yeah, it really was an investment, Schedule D, DOD basis, make it easy on yourself.

[mcb39]

The nice thing about an inherited house is that if she sold it for less than value on DOD; plus her other expenses to keep it up; she can actually take a Capital loss on the sale.  (Only on inherited houses; basis is value on DOD plus cost of fixing up and selling)

[Catherine]

Thanks to all!

[BHoffman]

Hope you get some rest and feel better!

[michaelmars]

UNLESS lived in by beneficiary, an inherited house is considered investment property.  Always long term.

[Terry D EA]

Catherine, I've got nothing to add. Others have given you the best advice with Sch D. One thing I can add is I hope you are feeling better and moving forward.