In TurboTax (TT), enter at:
- Federal Taxes tab
- Wages &
Income
Scroll down to:
-Investment Income
-Stocks, mutual funds, Bonds,
Other (Real estate is other)
Your problem is in determining the cost basis of the split off parcel. You
may have to pay for a professional appraisal to get that. But, the usual way is
best explained by example:
You bought a rental house in 1999 for $100,000. The 1999 property tax bill
accessed the building at $80.000 and the 3 acres of land at $20,000. In 2017,
you split the lot into two parcels; 1 acre of vacant land and 2 acres with the
house. The 1 acre is 33% of the total land. 33% of $20,000 is $6600. $6600 is your cost basis in the 1 acre parcel. You
then sold the 1 acre for $50,000. Your capital gain is 50,000 – 6600 =
$43,400. Your remaining cost basis in
the 2 acres with rental house is now 100,000 – 6600 = 93,400
