topic I cannot find where to record income earned from the sale of land. in After you file

I cannot find where to record income earned from the sale of land.

jason-sandefer — Sat, 01 Jun 2019 01:59:50 GMT

I found where to record income earned from the sale of a home, but the home that I sold in 2016 originally included a lot next door to the home (this was wrapped up in the loan for the home). When I sold the home, I kept the lot and sold it a few months later (also 2016). I need to know where to record income earned from the sale of this lot.

Sale of land gets reported in TurboTax as a sale of an in...

JohnR1 — Sat, 01 Jun 2019 01:59:51 GMT

Sale of land gets reported in TurboTax as a sale of an investment.

Please follow the following steps to record the sale in TurboTax:

Within your return, select Federal Taxes tab
Select Wages & Income tab
On "Your income" page, click Start button for Stocks, Mutual Funds, Bonds, Other
On "Did you sell any investments in 2016?", click on Yes button
On next page, answer whether or not you received a 1099-B or a brokerage statement for the sale
On next page, "Choose the type of investment you sold", select radio button for Land and click on Continue button
Enter the details of your land sale on the next page, "Enter Land Sale Information" and click on Continue buttton
On next page, select radio button for the way in which you acquired the land and click on Continue button
On next page, "Any Business or Rental Use?", indicate how you used the land and click on Continue button
On next page, "Enter Cost Information", enter Date Acquired and Original Cost and click on Continue button
TurboTax will then calculate your gain on the investment in land, indicate whether it's short- or long-term, and indicate your Proceeds and Cost Basis
You can proceed further and add any additional similar investment sales in like fashion

Thanks!

jason-sandefer — Sat, 01 Jun 2019 01:59:53 GMT

Thanks!

Actually, that doesn't seem the right way to report this...

TomYoung — Sat, 01 Jun 2019 01:59:56 GMT

Actually, that doesn't seem the right way to report this sale. I believe the lot sale and the home sale need to be combined, which can work to your advantage, potentially excluding more capital gain.

Here's what the IRS has to say about your situation (I supplied the emphasis:(

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Pub 523

"Vacant Land Next to Home

If you have vacant land adjacent to the land on which your home sits, you can only claim the sale of that land as part of a sale of your home if ALL of the following are true:

You owned and used the vacant land as part of your home.
The sale of the vacant land and the sale of your home happened within 2 years of each other.
Both sales either meet the eligibility test or qualify for partial tax benefits as described earlier.

If your sale of vacant land meets all these requirements, you must treat that sale and the sale of your home as a single transaction for tax purposes.

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Tom Young