Inherited Property

[Graywolf4N]

I sold a piece of inherited land with no house on it.  I received  a substitute form 1099-S.  I keyed this into the investment part of Turbo Tax and it comes out on the Schedule D and Schedule 8995.  I got a form 1099-S from the buyer.  I have a couple of questions:

1.  Did I key this in the correct area (since this is not my main home - the property is vacant)?

2.  What to I do with the 1099-S?

Thanks in advance for helping me out.

Cheryl

[JulieS]

Yes, the sale of vacant land belongs on Schedule D. 

Are you sure the Form 8995 is related to the sale of this land? Form 8995 is a qualified business income deduction and it is triggered by a business activity or certain dividends. 

You keep your 1099-S with your tax records, just like you keep a copy of your W-2 forms.

[Graywolf4N]

Sorry about the 8995. I didn't mean to include that.  I used the cost basis from last year's real estate taxes because this has been land has been handed down for a long time.  Is that ok?

[JulieS]

Yes, that is a good source for your cost basis.