1099S

[inherited land and sold 1099S]

1099S Inherited land and sold after 25 years

[SabrinaD2]

When you sell inherited land, the sale is subject to capital gains tax. The gain is calculated based on the difference between the selling price and the stepped-up basis, which generally is the fair market value (FMV) of the property at the time of the decedent's death (unless otherwise elected by the executor).- See IRS information here.

To enter in TurboTax follow steps below:

Because these types of sales are considered investment sales, enter this info in the investment section of TurboTax.

You’ll have to use TurboTax Premium to report the sale of a second home, an inherited home, or land.

1. Open or continue your return.
2. Navigate to the sold second home screen:
   • TurboTax Online/Mobile: Go to sold second home.
   • TurboTax Desktop: Search for sold second home and select the Jump to link.
3. Answer Yes on the Did you have investment income in 2024? screen, then Continue.
   • If you land on the Your investments and savings screen, select Add Investments.
4. Follow the onscreen instructions.