Q. How do I claim the sale of land on my Federal and Illinois taxes?
A. In TurboTax (TT), enter at:
- Federal Taxes tab (Personal in Home & Business)
- Wages & Income
Scroll down to:
-Investment Income
-Stocks, mutual funds, Bonds, Other (Real estate is other)
Q. Do I owe any capital gains tax?
A. Yes you have a long term capital gain. If the sale results in a capital loss, reply back for more instructions.
When asked for the acquisition date, enter "inherited". The cost basis is the fair market value on the date of death of the decedent. Apparently you sold a half interest, so your basis will be half the total basis
