To report a sale of inherited land:
Go to Your 2016 Income Summary.
Go down to Investment Income.
Click Start or Update by Stocks, Mutual Funds, Bonds, Other.
Click either Yes to continue, or + Add More Sales.
Answer Yes or No to Did you get a 1099-B or a brokerage statement for these sales?
Select Land on Choose the type of investment you sold.
Fill out Enter Land Sale Information.
Select Inheritance for Tell Us How You Acquired This Land.
Enter the date you inherited it on Enter Inheritance Information.
Enter the Fair market value of land on date the deceased passed away on the next screen. Click the blue Learn more if you need help.
Your gain or loss will be figured.
A gain or loss goes on line 13 of Form 1040. You're limited to a $3,000 loss this year, with the remainder being carried over to future years.
To check,
Go to My Account.
Go to Tools.
Go to View Tax Summary.
Go to Preview my 1040.
