She would treat it like the sale of a property in the US and report it as the sale of investment. This will be subject to capital gains taxes which will generally result in lower taxes than if it was taxed at your ordinary income tax rate.
If she pays taxes on the sale to China, she would also then be able to take a foreign tax credit to offset to the taxes paid to that country.
You would enter the sale of the land by clicking the following:
- Federal
- Income
- Show More next to Investment Income
- Start next to Stocks, Cryptocurrency, Mutual Funds, Bonds, Other (1099-B)
- Select Other
- Continue through and select second home for the type of investment
- Answer how you obtained it
- You will need to enter the selling price, dates and the cost basis
Note, your navigation sequence may be slightly different. You can also use the Jump to feature by entering investment sale in the search bar at the top of the screen.
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