Investors & landlords
You would enter the sale of land in the investment section. Even though the proceeds of the sale were reported on a 1099-S, the 1099-S form is not directly added to the tax return like some other forms are entered. The information on the 1099-S is added.
To enter this information, go to your TurboTax return:
- Click on the Wages & Income tab
- Next click on I'll choose what I work on
- Scroll down the screen until you come to the section Investment Income
- Chose Stocks, Mutual Funds, Bonds, Other and select Start or Update
- The first screen will ask if you sold any investments during the year, answer
- Did you get a 1099-B or a brokerage statement for these sales? Answer No
- Tell us about this sale, Click I'll enter one sale at a time
- The drop-down boxes can be filled out with the details of the land sale
- Description - general location or address
- Date sold - on 1099-S
- Date acquired - from your records
- Sale proceeds - on 1099-S
- Cost basis - initial purchase price plus expenses of the sale
Items added to basis.
You can include in your basis the settlement fees and closing costs you paid for buying your land.
The following are some of the settlement fees and closing costs that you can include in the original basis of your land.
Abstract fees (abstract of title fees).
Charges for installing utility services.
Legal fees (including fees for the title search and preparation of the sales contract and deed).
Recording fees.
Surveys.
Transfer or stamp taxes.
Owner's title insurance.
Any amount the seller owes that you agree to pay, such as back taxes or interest, recording or mortgage fees, cost for improvements or repairs, and sales commissions.
