Originally Posted by kgilby
I'm just not sure where on the Schedule D the capital gain/loss (disposition of the house) gets listed. I'm guessing it would begin on Line 8 - is that correct?
YouNEED TO report the sale of inherited property on Sch D of Form 1040. You must also provide information about the property on Form 8949, which requires the address of the property, the date you inherited the house, the date of the sale, the sales price and the adjusted or original basis, as applicable.
The IRS always considers the sale of inherited real estate long-term capital gains, regardless of how long you owned the property, so you must enter information about the sale in Part II of Sch D, which starts on Line 8. you may need to use the information you provided on Form 8949 to complete Lines 8 through 21 and enter the resulting figure on Line 13 of Form 1040.