You will report it as an investment gain. Your gain (or loss) will be the sales proceeds, adjusted for any selling costs such as commissions, less your adjusted cost basis (what you paid for the property plus and your improvements, such as tree removal and hauling in the dirt.
You will report that 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 "Other" to "OK, what type of investments did you sell?" and click Continue
- Enter the name of the person or firm 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"
- Indicate "How did you receive this investment?
- Enter the details of the sale, and the interview will walk you through entering the details of the sale
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