The capital gain on the sale is calculated based on the original cost when it was acquired and it's gross proceeds when it was sold. The current property value is not relevant for the capital gains purposes. Please follow the steps below to report the sale of land:
- Federal Taxes
- Wages & Income
- Scroll
down to Investment Income
- Select Stocks, Mutual Funds, Bonds, Other –
indicate that you have not received form 1099-B and continue through the
interview. You will be prompted to enter the sale category as “Land”.
