Capital gains on farm land

[kittysocks]

We recently sold part of our farm. I am getting several answers different answers about how to list this sale. Does it go under personal assets or do I need to add it to the farm assets (like tractors etc) and do it that way. Also, how does IRS know how much we originally paid for the farm by the acre?

[AmeliesUncle]

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@kittysocks wrote:

We recently sold part of our farm. 

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Do you mean you sold only land?  Or did you also sell other things?

Prior to the sale, was the land used as part of the business of farming?  Or was it used for personal or hobby purposes?

If you sold business land, I think you enter as an asset like you said (along with the tractors etc.).  That is where it SHOULD go, but I don't remember if TurboTax is set up for selling land that way or not.  In the event that section doesn't let you enter it there, you can use the "Sale of Business Property" section, but unfortunately I don't think it covers everything that it is supposed to, so using the Asset/Depreciation section is ideal if it will let you enter it there (or go to a good tax professional).