Sold raw land that was rented. Where is the sale entered?

[LB641]

When selling raw vacant land that was rented each year, and rental income documented under rentals, -  where is the sale of this raw vacant land that was rented, documented? There are no depreciable assets, so there no place to enter the sale there. But the rental income from this raw vacant land has been documented in rental income each year. So where is the sale entered?

[IreneS]

A land sale is considered a sale of an investment, so you would report the sale under Investments, following these steps: 

1. Click on Federal Taxes > Wages & Income  > I'll choose what I work on
   
2. In the Investment Income section click on the Start/Revisit box next to Stocks, Mutual Funds, Bonds, Other.   
3. 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.  
4. If you haven't already entered some investment sales, you will see a screen Did you sell any investments in 2018?  Click the Yes box.
5. Click the No box -- you didn't get a 1099-B for this sale
   
6. On the screen, Choose the type of investment you sold, mark the button for Land and click Continue. 
7. On the next screen, enter the land sale information.  Be sure to enter the net proceeds. 
8. Continue through the screens, entering the requested information.

[LB641]

Thank you. I thought that would be the way, but because I was entering it each year as a rental in the rental income section, I wasn't sure. So by doing this, when I import my data next tax year, will this show up in the list? If so, may I assume I just ignore or delete it for the coming year?   And on that note, if one sells a rental home, will it too show up in the following years forms/list, and would it be ignored or deleted, since it too was sold?   Much thanks

[IreneS]

Go back through the Rental section where you entered the rental payments.  On the Rental and Royalty Summary screen, click Edit next to the property.  On the screen, Do Any of These Situations Apply to this Property, mark the box "I sold or disposed of this property in 2018."

This should keep it from transferring to next year's return.

[LB641]

Ok thanks, I looked for that box, but the sale still gets documented under investments, not the rental section as a house rental would in the depreciation section? thanks

[IreneS]

Right.  If you couldn't find that box, it's OK, if the Sch E appears in your 2019 return, you can just delete it.

[LB641]

Much thanks.  So the rental home we sold should also not transfer over, but if it does, we can delete it from the listing?  thanks

[IreneS]

Right!