Assuming you meant that you sold a portion of your land to the state:
Report the sale transaction on your return. You'll make the entry for the sale of the land by clicking on the Federal Taxes tab, then Wages & Income, then scroll down to Investment Income and select Stocks, Mutual Funds, Bonds, and Other.
Respond "yes" to Did you sell any investments? You'll then be asked Did you get a 1099-B or brokerage statement? and you'll answer "no." Then you'll be shown a list of various investment sales and you'll select "land."
You'll be taken to the screen that says Enter Land Sale Information and you'll be able to enter your information. Be aware of the tiny box that says "I paid sale expenses not included in proceeds," as it must be checked if applicable to you.
Basis is generally the amount of your capital investment in property for tax purposes. Determine the basis of the portion of the land sold by figuring the proportionate amount of the purchase price of the entire parcel if that is reasonable. If there are improvements on the part of the land that wasn't sold, exclude the value of those improvements.
At such time as you sell the rest of the land, reduce the original basis by the basis of the land sold.
See this article for more information from the IRS on Basis.
See also this TurboTax article for more information on capital gains and losses and this article on real estate sales.
If the sale of that portion of your land was forced by the state, see this TurboTax article on involuntary conversion.
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