I recently sold about 1/2 of some farmland that I own (jointly with my sister, inherited from grandfather 50 years ago). Yes, the Capital Gains will be huge - but I am confused as to where to report it.
The Title company reported the sale of the farmland on a 1099-S. I guess that is OK because the 1099-S is used to report "Proceeds from Real Estate Transactions", although I thought 1099-S's were used mainly for the sale of your residence.
Anyway, the farmland was not purchased as an Investment (i.e. was inherited, gifted) and we have been receiving income from the farm via the sharing of crop proceeds for the past 50 years.
In searching the Turbotax community, I have seen advice on reporting the sale in the Farm Income and Farm Rental section under Business Items OR to report it in Stocks, etc., "Other" section under Investment Income. Is there a clear cut answer to my question of where to report the sale. I am leaning towards the Investment Income section since it says to be used to report "Real estate, second home or land (not your main home)".
And I have a secondary question. Even though the farmland was jointly owned, the income was not shared equally - so is it OK (even though no "formal" agreement exists) to also report the CG unequally (i.e. 60/40 or 70/30).
ron in shawnee
