Yes, the land sale will be listed on Schedule D for your taxes. The cost basis of the land would be the value at the time the deceased died. The sale will be entered in the investment section of TurboTax.
Follow these steps to enter your investment sales in TurboTax:
TurboTax Online
- Open or continue your return
- In the search box, search for sold second home and select the Jump to link
- Answer Yes on the Did you sell any stocks, mutual funds, bonds, or other investments in 2021? screen
- If you land on the Your investment sales summary screen, select Add More Sales
- On the OK, let's start with one investment type screen, select Other, then Continue
- On the Tell us more about this sale screen, enter the name of the person or institution that brokered the sale
- On the next screen, select Second Home (choose this also for inherited homes) or Land and answer the questions to finish entering your sale
Yes, you would have to report the inherited land sale on a nonresident state return for the state where the land was located.
Yes, you would need to include the sale on your resident state return. You should be able to take an income tax credit in your state of residence
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