Business & farm

The sale of the farm is entered in the investment sales section. 

To enter the sale of the farm:

Click on Federal > Wages & Income

1. In the Investment Income section click on the Start/Revisit box next to Stocks, Mutual Funds, Bonds, Other.  If you have already entered some investment sales, you will see a screen Here's the investment sales info we have so far.  Click on the Add More Sales link. 
2. If you haven't yet entered some investment sales, you will see a screen Did you sell any investments in 2022?  Click the Yes box.
3. On the screen,  OK, what type of investments did you sell? mark the Other box and click Continue.
4. When you get to the screen, Now we’ll walk you through entering your sale details, enter the details of the sale.  You will be able to select the type of investment in the first box [second home, land, farmland.]  
5. Enter the requested information and click Continue when done.

The sales proceeds would be the amount that you received. 

The basis for inherited property is the value on the date of death. You may be able to use the tax assessor's office or know some local real estate agents that can provide a better basis. Included in the basis will also be the selling expenses. You will need to determine the cost basis for the land. You can add the closing costs and other expenses of the farm sale to the cost basis.

Other expenses like improvements and charges listed on the settlement statement are added to the basis. The bigger your basis, the smaller your capital gain, and that means less tax.

And some expenses that are listed on the settlement statement can be added to the basis. These include:

• Title fees
• real estate commissions
• documentary stamps
• credit report costs
• costs of an abstract
• transfer taxes
• home inspection
• flood certificate
• attorney fees, etc.