Help!!! I have an inherited parcel of farmland along with other family members. Im a resident of Minnesota and the sold parcel is in Iowa. I have never been involved in the management of this land. It was sold in 2020 and ive been confused as to where I document this sale and the capital gains. I finally put the information in the Investment income section. I received from the buyer a 1099-S. The program keeps asking for a 1099-B, therefore not allowing me to enter the information from the 1099-S How do I get this income to show in Iowa state and not Minnesota. I also rented out the land in 2020 prior to it being sold. That info I entered into Rentals and Royalty. I'm wondering if that should have gone under misc. income. The rental income was reported on a 1099misc, and also did not role over to Iowa as income. Ive read conflicting answers and just need someone who really knows the answers to these questions. I've been told to make sure to do the Iowa state tax info before Minnesota, but it's already posted to Minnesota before I even start with entering the state info. When I start the Iowa state there is a section that says it will let me tell the program where my common income was earned. However all it touches on is uncommon income and then you are done. Ive used TurboTax for years, and this is the first time I've been stumped.
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Since you have the farmland listed with rental information, go back into the rental section and do two things.
Nonresidents of Iowa must file a return if they have $1,000 net income from Iowa.
Prepare the Iowa return first to create a tax liability. Then go into your state return. Yes, the state has information it pulls in. Just don't go through and finish your state resident return until you complete your nonresident return.
The Iowa return takes a long time going through a lot of screens - all of the resident screens, then it comes to nonresident and lists all of your income. You select the Iowa amount and finish up.
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