I invested in land 10 years ago and the investment is finally starting to pay off. Details:
- Invested via a company who manage all aspects, it is 100% passive for me
- The first sale was only partial, about 11% of the initial investment
- The first sale was about 30% above my proportional purchase price
- There is no guarantee the remaining 89% will ever be recovered
- I have not been told what tax form I will receive yet, waiting for their reply
My question is: Do I have to report a 30% gain on this fractional sale or can I treat it as a return of capital and only report the gain once my whole investment is returned (may or may not happen) and I start making profit on the whole investment?
Does Turbotax handle this kind of transaction?
Thanks!! Tim
