Get your taxes done using TurboTax

The program thinks that your land cost is your only cost, so when it is compared to the sale price, it looks like a huge gain.

However, your "Cost Basis" isn't just the land; it is the (Land Cost + Construction Costs + Capital Improvements).  The program doesn't have a separate box for "construction costs"... you need to add all these costs together to get a total (which you will enter as the "Adjusted Basis").

Delete the entries from your 1099-S (or delete the form entirely).

Here's the general procedure for viewing a list of all the forms in your return and deleting unwanted forms, schedules, and worksheets in TurboTax Online:

1. Open or continue your return.
2. On Tax Home, select Start, Continue, or Pick up where you left off to enter your return.
3. In the left menu, select Tax Tools and then Tools.
4. In the pop-up window Tool Center, choose Delete a form.
5. Select Delete next to the form, schedule, and worksheet in the list and follow the instructions.

TurboTax FAQ: How do I view and delete forms in TurboTax Online?

Enter the Sale of Home here:

1. Open or continue your return.
2. Search for "sale of home" in the Search box.
3. Click on "jump to sale of home" link
4. Answer the interview questions.  Date you purchased home should be your construction completion date (or when you moved in).
5. Eventually, you will land on your ''Home purchase price and basis details" where you will enter your total adjusted basis cost.  

There is a $250,000 (MFJ $500,000) capital gains exclusion on the sale of you home if your filing status is Single.