I inherited farmland 4 years ago, and sold it for a loss last year. Do I report this as Business property (as Capital Loss)? Or personal (loss not deductible)? The farm was bought by my grandfather 50 years ago and actively farmed the land. My father inherited it 35 years ago and leased it to another farmer for 10 years and also used it for recreation (hunting). My mother inherited it 15 years ago and did nothing with it (no farming, no recreation). I inherited it 4 years ago and immediately put it on the market as farmland (and had it appraised). I sold it last year for less than the appraised value when I inherited it.
