We live in the Florida Keys where there are strict requirements for land to be “buildable”.
In 2017 we purchased an empty waterfront lot for $340,000 classified as “vacant land”. We sold it as a buildable lot in 2023 for $800,000. In order to go from vacant land to buildable lot we incurred $126,500 in professional fees, inspections, contractors and permit fees.
I entered the proceeds from the sale of the property in “Investment Income” under “Stock, Cryptocurrency, Mutual Funds, Bonds, Other”. According to the help pop-up in TurboTax this is the correct place to enter the land sale. TurboTax gives me a place to deduct closing costs and commissions from the sale and generates a form 8949.
However, it doesn’t allow me to deduct the additional $126,500 in professional fees, inspections, contractors and permits on form 8949.
Adding these costs to box G “Amount of Adjustment” doesn’t feel correct. Where do I itemize these expenses?
Thank you
