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New Member

How and where do I enter the partial sale of rental property adjacent vacant land? ?

How and where do I enter the partial sale of rental property adjacent vacant land?  I sold part of 23 acres of land that my rental mobile home sat upon.  I'm still renting the mobile home and the 4 acres it sits on. I just sold off the adjacent vacant land at a lose because the renters never would take care of the mowing etc..  Since this was used for rental income, does the sale get logged as income asset  sale?  I know the land is not part of the basis for the rental and that land is not depreciated, but I would like to use the lose to reduce my taxes if possible.  How and where do I enter such an event?

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Accepted Solutions
PatriciaV
Expert Alumni

How and where do I enter the partial sale of rental property adjacent vacant land? ?

Yes, you may report this transaction as an Investment Sale. If the sale resulted in a loss, you may claim that loss on your tax return.

If you never included this land in the cost basis for your Rental Property, then you have no adjustments to make for that property. However, if the land was included in the cost basis of the rental property, you will need to reduce your cost basis for any future sale. As you said, land is not depreciated, so you don't need to make any changes to the basis of your Rental Real Estate Asset for depreciation.

The easiest way to find this section of TurboTax is to open your return and use the Search box at the top right side of the TurboTax header. Click on the magnifying glass, type in "investment sales", hit Enter, and click on "jump to investment sales" to go directly to beginning of this topic.

On the page "Choose the type of investment you sold," check the box for "Land." Follow the prompts to enter the sale information. TurboTax will calculate the gain or loss on the sale.

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2 Replies
PatriciaV
Expert Alumni

How and where do I enter the partial sale of rental property adjacent vacant land? ?

Yes, you may report this transaction as an Investment Sale. If the sale resulted in a loss, you may claim that loss on your tax return.

If you never included this land in the cost basis for your Rental Property, then you have no adjustments to make for that property. However, if the land was included in the cost basis of the rental property, you will need to reduce your cost basis for any future sale. As you said, land is not depreciated, so you don't need to make any changes to the basis of your Rental Real Estate Asset for depreciation.

The easiest way to find this section of TurboTax is to open your return and use the Search box at the top right side of the TurboTax header. Click on the magnifying glass, type in "investment sales", hit Enter, and click on "jump to investment sales" to go directly to beginning of this topic.

On the page "Choose the type of investment you sold," check the box for "Land." Follow the prompts to enter the sale information. TurboTax will calculate the gain or loss on the sale.

LeslieO
Level 2

How and where do I enter the partial sale of rental property adjacent vacant land? ?

I am trying to enter the sale of investment land.  When I go the jump to investment sales it brings me to my brokerage sales and I cannot find where you choose the type and click on land. I am using the turbotax Premier. thanks.

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