The option to select "land" as an investment was probably removed because it wasn't necessary. "Land" is not treated differently for tax purposes than most other investments, so it did not require a special set of interview questions.
The current screens in the Investment Income section are shown in the following screenshots. Land is included in the general list of "investment properties".
Thanks - one issue though. When I go to fill out the non-resident RI return to report the land sale, it carries forward a 1099B instead of a 1099S. Also, when you enter the RI real estate tax withheld on the generic federal form, you get a question on the Rhode Island form asking about real estate taxes withheld, so if you enter the amount, it gets double counted. Also looks like the RI return want you to denote a 1099S form (which you can't change in the forms section), and to attach a 1099S form to your return.
Will all the sales and taxes paid on the RI form carry forward to my Pennsylvania form and be reflected on my PA schedule G-L automatically? Because it is showing that I owe PA tax on the RI land sale so far...
Just tried to do PA taxes - for some reason, the RI land sale is coming through as "other income" instead of Sales gain/loss on the PA tax tax credit page, so cannot get a credit for taxes paid to RI.
I did a land sale in Maine, and it pulls through to the correct block.
The 1099-S reports the sale of the land. The 1099-B is to record the profit or loss from the sale.
If you live in PA, all transactions are taxable in your home state. You do owe taxes to RI because that is where the land is. You should get a credit on your PA taxes for the amount you paid in RI.
As you go through your state returns there will be places to allocate the income properly.
Except it isn’t.
the RI land sale shows up as other income in the PA schedule G-L, so you get no credit for taxes paid in RI
The ME land sale shows up in the sales gain/loss on the PA schedule G-L, so you do get a credit for the taxes paid in Maine
I tried to manually zero out the Other Income section for the RI sale, but the form is locked.
Found a bug in you PA Return software:
Did a tax return with just Land sales - followed your steps:
PA resident
Entered sale of vacant lot in Maine in investment section
Entered sale of 2 vacant lots in Rhode Island in investment section
Federal Return looks good
RI Return looks good
Maine Return looks good
PA Return - Schedule G/L is a problem
Maine land sale pulls into Sales Gains or losses and I get a tax credit
Rhode Island land sale pulls into "Other Income" instead of Sales Gains or Losses. Gives a tax credit of zero.
Why is Turbo Tax PA State handling the two states different? What should I do to get around the problem with the RI data pulled into the PA Schedule G-L incorrectly?
It's not clear why PA is handling the two sales from two separate state returns differently. The good news, as a PA resident, is that the tax doesn't change no matter where it is reported. PA has a straight tax liability on all taxable income (3.07%) so it won't change no matter where the income is reported.
As long as you are seeing credit for taxes paid to another state for both ME and RI your end results will be accurate.
Thanks!
But the issue is that since the PA tax form pulls in the land sale from RI as other income (vs. sales gains and losses as it does with Maine) the PA Tax Credit for taxes paid in RI is ZERO. Maine land sale taxes paid in Maine gets the PA credit.
From what I have been told, TurboTax best handles this type of tax "transaction" from another State best if you complete your NR States first, and then complete your Resident State questionnaire. I do hope this help! I have seen this happen in past with other tax preparation software systems.
Thanks. I did the NR states first since TT said it was the best way to get the credit in the Resident State. No Luck.
If you go through the state interview it will eventually come to:
As a note: You will get a credit up to