While you will report the sale in the investments section, if you have been reporting farm rental income on SCH E, then you need to work through each asset on that SCH E and show it was "converted to personal use" on the closing date of the sale. This is especially important if you sold any farm assets that were depreciated, so you can get the correct amount of depreciation on that asset, which has to be declared and recovered/taxed when you report the sale in the investment section. Overall, the land itself is not depreciated. But if you had any other assets such as a structure (barn maybe?) or farming equipment that was sold, you have to account for all depreciation taken on those assets.
