Yes. Just add the costs of the additions to the purchase...

Sale of develped land, not rental property

I sold a piece of land with electricity, water and a small building. It was purchased as an investment, but I took a huge loss on it in the sale.
In addition, I purchased a house in the same year.
How is this entered in Turbo Tax?

posted

You'll report the land sale under Wages & Income / Investment Income / Stocks, Mutual Funds, Bonds, Other. On the next screen, click +Add Sale. You'll choose "Land" for the type of investment you sold (see screenshot below).

You will not need to enter the house purchase on your return unless it is being used as a rental property, in which case it would be entered under Rentals, Royalties, and Farm in the Wages & Income section of the return.

I noted the description of land states there are no buildings. I developed the land with electricity, water and added a small building. Is this the same as the definition of land according to the IRS? Thank you so much for your help!