Inherited unused Farmland and sold it for a loss

[TonyZuka]

I inherited farmland 4 years ago, and sold it for a loss last year.  Do I report this as Business property (as Capital Loss)?  Or personal (loss not deductible)?  The farm was bought by my grandfather 50 years ago and actively farmed the land.  My father inherited it 35 years ago and leased it to another farmer for 10 years and also used it for recreation (hunting).  My mother inherited it 15 years ago and did nothing with it (no farming, no recreation).  I inherited it 4 years ago and immediately put it on the market as farmland (and had it appraised).  I sold it last year for less than the appraised value when I inherited it.

[DianeC958 · Accepted solution]

Yes, you report the sale as a Capital Investment in the Investment Section of TurboTax under Stocks, Bonds, Other.  Your acquired date is the date of death of your mother and your basis in the land is the Fair Market Value as of the date of her death.

After you click No that you did not get a 1099-B for this sale there is an option for land.

This is a capital loss which is deductible on your tax return.  If your loss is more than $3,000 you can take a maximum of $3,000 per year above capital gains on your tax return.

What is the Capital Gains Tax?

[MarkLeBlanc]

After I clicked No that I did not get a 1099-B for this sale, I DO NOT HAVE OPTION FOR LAND SELECTION.

I have updated and latest version.  Help.

[Irene2805]

A land sale is considered a sale of an investment.  To report this in TurboTax, please follow these steps:

TurboTax CD/Download

1. Click on Federal > Wages & Income
2. In the Investment Income section click on the Start/Revisit box next to Stocks, Mutual Funds, Bonds, Other.  If you have already entered some investment sales, you will see a screen Here's the investment sales info we have so far.  Click on the Add More Sales link. 
3. If you haven't yet entered some investment sales, you will see a screen Did you sell any investments in 2020?  Click the Yes box.
4. On the screen, Did you get a 1099-B... click the No box.
5. On the Tell us about this sale screen, mark the radio button I'll enter one sale at a time and click Continue.
6. Enter the information in the boxes that appear.
7. If you inherited this land, in the Holding Period box, select Long term.  
8. If you did not enter net proceeds on the previous screen, you can enter the expenses on the screen, Select any less common adjustments that apply.  
9. Mark the box The reported sales price did not deduct all fees or selling expenses and enter the expenses in the box that appears.

TurboTax Online

1. Click on Federal > Wages & Income
2. In the Investment Income section click on the Start/Revisit box next to Stocks, Mutual Funds, Bonds, Other.  If you have already entered some investment sales, you will see a screen Here's the investment sales info we have so far.  Click on the Add More Sales link. 
3. If you haven't yet entered some investment sales, you will see a screen Did you sell stocks, mutual funds, bonds, or other investments in 2020?  Click the Yes box.
4. On the screen, OK, what type of investments did you sell? mark the Other box and click Continue.
5. On the screen, 

   Now we’ll walk you through entering your sale details, select Land (personal use)  or Land (other investment purpose).

6. In the How did you receive this investment box, select I inherited it.

7. In the Proceeds box you can either enter the net amount OR enter the gross amount and mark the box on the  next screen, I paid sales expenses that aren't included in the sale proceeds reported on the form.  Enter the sales expenses in the box that appears.

@MarkLeBlanc