If you did not take any tax deductions for the property tax on the two vacant lots, you can increase your basis in the properties by the amount of the property tax paid. This will reduce your gain, or possibly result in a loss. If you did take tax deductions, then you cannot adjust your cost basis.
You will report the sale in the same section in which you report stock and other investment sales. To enter:
- Type "Investment sales" in the search window and click Enter
- Click on "Jump to Investment sales"
- On the page with "Did you sell any investments in 2020?" Answer Yes
- Answer No to "Did you receive a 1099-B..."
- Enter the name of the person or financial institution that brokered this sale
- On the page with "Now we’ll walk you through entering your sale details" for "What type of investment you sold" Indicate "Land"
- The interview will walk you through entering the details of the sale
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