If you are a US citizen or resident, you are required to file a US tax return for income from all sources both domestic and foreign. Therefore, you will need to report this land sale (converted into US dollars) on your tax return as the sale of a capital asset.
To enter this transaction in TurboTax Online or Desktop, please follow these steps:
- Once you are in
your tax return, click on the “Federal Taxes” tab ("Personal" tab in TurboTax Home & Business)
- Next click on
“Wages & Income” ("Personal Income" in TurboTax Home & Business)
- Next click on “I’ll
choose what I work on”
- Scroll down the
screen until to come to the section “Investment Income”
- Choose “Stocks,
Mutual Funds, Bonds, Other” and select “start’ (or “update” is you have
already worked on this section) (see Screenshot #1)
- The
first screen will ask if you sold any investments during the current tax
year (This includes any sale of real property held as an investment property so answer “yes” to this question)
- Since you did not receive a 1099-B, answer “no” to the 1099-B question
- On the next screen
you will enter the sales information as follows
- Description – usually the address of the property sold
- Date Sold – Date you sold the property
- Date Acquired – Date you purchased the property
- Sales Proceeds – Total amount received for the property (in USD)
- Cost Basis – Amount you originally paid for the property plus any capital improvements to the property (in USD)
- Adjustment Amount – leave this box blank (see attached screenshot #2)
Click this link for further information about reporting
the sale of a capital asset
