Yes, you can report the sale of the land as a sale of an investment item as Opus 17 and Mike9241 stated.
Please follow these steps to enter it into TurboTax:
- Click "Wages & Income" (under Federal) on the left
- Scroll down and click "Show more" next to "Investments and Savings"
- Scroll down and click "Start" next to "Stocks, Cryptocurrency, Mutual Funds, Bonds, Other (1099-B)"
- On the "OK, let's start with one investment type" screen select "other"
- On the "Now, enter one sale" screen select "Land (other investment)" and enter the information.
Yes, as Mike9241 stated you would allocate 1/40 of your basis in the total property (purchase price plus improvements) as the basis of the sold land.
As Opus 17 mentions you will have to reduce the basis of your property by the basis entered for the sale of the land.
@AlanNB
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