The sale of the farm is entered in the investment sales section. You can rent a farm and have expenses for the rental, but the farmland is not depreciated in the way that residential rental property would be.
To enter the sale of the farm:
Click on Federal > Wages & Income
- 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.
- 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.
- On the screen, OK, what type of investments did you sell? mark the Other box and click Continue.
- 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, etc.]
- Enter the requested information and click Continue when done.
You will need to determine the cost basis for the land. You can add the closing costs and other expenses of the farm purchase to the cost basis.
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