Reporting trust land sale

[JohnT3662]

First, I apologize for this repeated question, but I cannot find a satisfactory answer. My situation is straightforward. I'm using TT for Businesses to file trust taxes as the successor trustee. In 2021, some land that was held by the trust was sold. I need to know exactly where and how to enter this in TT. Entering it as Rental Property (it was leased for a few months in 2021) that was sold doesn't work, as TT does not ask me anything about the proceeds from the sale. Neither do I see anywhere to enter it as farmland that was sold. I have spent way too much time on this one item, so some help would be greatly appreciated!

Thanks,

John

[KrisD15]

If it was a rental, you would enter it as a rental, report the 2021 income and expenses. Select that it was sold in 2021.

Revisit Rentals, review, select edit next to the property, scroll down to Sale of Property/Depreciation and enter the sale there. 

OR since there would be no deprecation involved for land, enter it as a sale of investment, but you would still need to claim the rent income. 

Step-by-Step if Desktop

Personal

Personal Income

Investment Income

Stocks, Mutual funds, Bonds, Other

"Did you get a 1099-B"   NO

"Tell us about the sale"    I'll enter one sale at a time   

Enter the information on the drop-down including 

Description

Date Sold

Date Acquired

Sale Proceeds

Cost or other basis 

Holding Period (short or long) 

Continue

[JohnT3662]

Thank you! I will give it a go.

[JohnT3662]

I did the following and was not given an opportunity to enter the sale of the land. The bold part does show. I'm totally stumped. Just to confirm, this is TT Business, not personal.

If it was a rental, you would enter it as a rental, report the 2021 income and expenses. Select that it was sold in 2021.

Revisit Rentals, review, select edit next to the property, scroll down to Sale of Property/Depreciation and enter the sale there.

[PatriciaV]

@JohnT3662

In TurboTax Business, the information for the sale of a Rental property held by a trust is entered during the interview for the Rental Property Asset. If you have already set up the property, click "Edit" beside the related Schedule E from the Rental and Royalty Property list.

1. Look for the page "Tell Us About Your Rental Property," and check the box for "The property was sold or otherwise disposed of..." 
2. After you enter income and expenses, you will be asked to enter your rental assets. If you have already entered the asset, click Continue.
3. At this point, you will be asked for the specific sale information.

[JohnT3662]

Thank you, Patricia!

[Burntside]

My question is similar in regards to a Trust sale of land. The land had never been rented and had been held by the Trust since 1972. We own 5.6% of the Trust shares. We recived a check for our % of the sale amount.

I use TT Premier for our taxes becasue we own rental property and that is able to account for the properties and our personal income. There is no proper place in TT Premier to enter this Trust info. Any suggeations how to moive forward. Thanks in advance for any repsonse. 

[DavidD66]

Trust taxation depends on several things.  One of those is whether the Trust is a revocable (grantor) or irrevocable trust.  Since you have a 5.6% interest in the trust I am assuming it is an irrevocable trust.  An irrevocable trust is required to file a tax return on Form 1041 and issue K-1s to the beneficiaries.   If it hasn't already, the Trust should issue you a K-1 reporting any or capital gains taxable to you, as well as non-taxable distributions.  You report the K-1 on your personal tax return.  It is possible that the Trust paid tax on the capital gains, and it is also possible that you will be responsible for the capital gains tax.  I recommend that you contact the Trustee of the trust for information on how the Trust handled the transaction and what you need to do.

[Burntside]

Thank you very much for your prompt and thorough response. Very much appreciated.