Schedule D - Sale of Inherited Property

To enter personal property (or inherited property that is considered personal property) on Schedule D:

When you are going through the Q&A for Form 1099-B, on the screen titled Investment Sales - Adjustment Code(s), you should select Code L - Other Non-Deductible Loss (including personal loss). When this code is selected, the gain/loss column on the Schedule D will be zero instead of a negative number (as is appropriate since losses on personal property are not deductible). On the following screen, the loss adjustment amount will need to be entered or verified.

To reach that screen in your TaxAct® return:

  1. From within your TaxAct return (Online or Desktop), click Federal. On smaller devices, click the menu icon in the upper left-hand corner, then select Federal
  2. Click Investment Income to expand the category and then click Gain or loss on sale of investments
  3. Click Capital gain or loss (Form 1099-B)
  4. Click New Copy of Form 1099-B (Desktop users click Add) to create a new copy of the form or click Review to review a form already created 
  5. Continue to the screen titled Investment Sales - Adjustment Code(s)

Note: If the inherited property is not considered to be personal use property then you would not select Adjustment Code L. This will ensure the loss would still carry to the Form 1040.