No, you are not correct. IRS Pub. 544 explains property is a capital asset. Any time you sell or exchange capital assets, such land, you must report the transaction on your federal income tax return. For the sale to show in your Georgia return, it must be enter in the federal return to be transferred over. You must report capital gains in both the federal and state of Georgia returns. Since Texas does not have a state income tax, you were not required to file a state return of Texas reporting a gain.
The only time you do not report the sale of property without a 1099-S, is the sale of your primary resident and an exclusion applies. IRS Pub. 523 states,
"Determine whether you need to report the gain from your home.
You need to report the gain if ANY of the following is true.
- You have taxable gain on your home sale (or on the residential portion of your property if you made separate calculations for home and business) and don’t qualify to exclude all of the gain.
- You received a Form 1099-S. If so, you must report the sale on Form 8949 even if you have no taxable gain to report. See Instructions for Form 8949 and Instructions for Schedule D (Form 1040) for more details.
- You wish to report your gain as a taxable gain even though some or all of it is eligible for exclusion. You may wish to do this if, for example, you plan to sell another main home within the next 2 years and are likely to receive a larger gain from the sale of that property. If you later choose to report, rather than exclude, your taxable gain, you can undo that choice by filing an amended return within 3 years of the due date of your return for the year of the sale, excluding extensions."
To correct your federal and GA return, an amendment should be submitted.
To amend your returns use this link.
@37laurel
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