1099 S

Yes, you must pay tax on the gain for federal income tax purposes.  It would help if you could clarify how you acquired the property and what it was used for before the sale. If it was not inherited you can please add additional comments and one of our tax experts are here to help.

 

The steps below will explain how to handle inherited property and you would use your 1/4 for the sales price, and potentially the cost basis and selling expenses.

 

Inherited property that is sold is ALWAYS considered with the long term holding period regardless of when it was inherited.  This allows the capital gain tax rates for any gain, which is lower then regular tax rates.

 

The sale of inherited property can be entered using the following instructions.  

1. Open or continue your return (you can choose the Search box and type 'sale of second home' then use the Jump to link to enter your inherited sale) or follow the menu.
2. Under Wages & Income scroll to Stocks, Cryptocurrency, Mutual Funds, Bonds, Other (1099-B)
3. Answer Yes on the Did you sell any stocks, mutual funds, bonds, or other investments in 2021? screen
   • If you land on the Your investment sales summary screen, select Add More Sales
4. On the OK, let's start with one investment type screen, select Other, then Continue
5. On the Tell us more about this sale screen, enter the name of the person or institution that brokered the sale
6. On the next screen, select  Other (choose this also for inherited homes) then select I inherited it under How did you receive this investment?

Thank you so much.  It did give me clarification.  The land was an inheritance from my mother.   Is the 1099 B the same as 1099 S.  I have the 1099 S but all I see is 1099 B in the turbo tax deluxe program.

 

Thank you so much

You have to enter it under "other".

 

Go to Wages & Income

1. Scroll to Investments and Savings
2. Select Stocks, Cryptocurrency, Mutual Funds, Bonds, Other (1099-B)
3. Time to kick off your investments! = Okay
4. Time to kick off your investments! = Continue
5. Let's import your tax info = Enter a different way
6. There are five boxes available
   1. Interest
   2. Dividends
   3. Stocks, Bonds, Mutual Funds
   4. Cryptocurrency
   5. Other
7. You will select Other

You will then go through an interview process to describe the sale.