It depends. Mutual of Omaha will send you a 1099R that reports the annuity you are earning from the sale. In addition, the bank that services your HYSA will send you a 1099 INT that reports the interest earned during the year to report on your 2025 tax return.
You do need to report the sale of the property. Here are the considerations for reporting.
- Since you sold the land in 2025, you must report this on your 2025 federal tax return (due in April 2026). Step-Up in Basis: This is your best friend. When you inherit property, your "cost basis" (the value for tax purposes) is usually the Fair Market Value (FMV) at the time of the owner's death, not what they originally paid for it.
- If the land was worth approximately $8,000 an acre when you inherited it, and you sold it to your brother for $8,000 an acre, your taxable gain is $0.
- You report this on Form 8949 and Schedule D. Even if the gain is zero, you must report the sale to the IRS to show why you don't owe taxes on that $640,000.
You may consider the services of a tax expert if your tax expertise may be lacking especially with the sale of the property. Turbo Tax employs "Live agents' that perform this task. Here are some links you can select to get started with this process. Here is a link to the Turbo Tax website.
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Turbo Tax Live Full Service
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