Bug in Turbo Tax Desktop

[turbotom]

When I enter in information for a land sale from my 1099-S, the software changes it to a 1099-B stock sale. I have tried multiple times, upgraded to Premier, and it still does it.

[ThomasM125]

I think what you are referring to is when you enter the land sale, it will be reflected on the investment summary sheet as "Stocks, Bonds, etc (1099-B)." That doesn't mean it will be associated with a transaction reported on a Form 1099-B necessarily, it is just being grouped together with those type of investments on the summary page.

It will populate on page 2 of Form 8949 Sales and Other Disposition of Capital Assets with code F or C meaning it was not reported on a Form 1099-B.

If it does not appear that way, you may have entered the Form 1099-S information incorrectly. Here is how the sale of your investment land should have been reported:

You enter investment sales in the Wages and Income section of TurboTax, then Investments Sales, then Stocks, cryptocurrency, Mutual Funds, Bonds, etc... Choose Other as the type of investment sold. On the screen where you enter the sale, choose Land (other investment purpose) for the type of investment you sold.

[turbotom]

Thanks for the reply.
When I enter the information under Investment Income > Stocks, Cripto, Mutual Funds, Bond, Other, there is an option to enter a 1099-S (which I have) land sale. When I go through all the fields and questions and save it, it shows up as a 1099-B Stock sale. Are you saying that does not matter?

[JamesG1]

Not sure.  What is the nature of the land sale that you are reporting?  Please clarify.

IRS form 1099-S Proceeds from Real Estate Transactions may report:

• Your main home, 
• A second home, 
• A vacation home, 
• Land,
• Residential rental property, or
• Real property recorded as a business asset.

The tax treatment of each of these transactions differ. 

Sale of a second home, an inherited home or land are considered investment sales and the sales are reported on IRS Schedule D and IRS Schedule 8949.

The treatment recommended by @ThomasM125 is correct for these transactions.

@turbotom 

[turbotom]

The sale was land for personal use that I received a 1099-S for.
When you go in to the investments portion of the income entries, there is a button specifically for entering info from a 1099-S. I go through all those steps and when I completed and come back to the summary section, it reflects the entry as a 1099-B Stock Sale.

[RogerD1]

What your screenshot is showing is just a generic categorization of all capital gains and losses on the summary page.  Even though the land was not reported on a 1099-B, when you enter it as ThomasM125 suggested, it will be reported on the Form 8949 using the information and description that you gave it in TurboTax.  The tax treatment of a sale of land is the same as the sale of stock - both are subject to taxes on gains and both can be categorized as either short term or long-term gain.  The 8949 will also report this on Form 8949 with Box C checked for short-term or Box F checked for long-term.  Both of these boxes pertain to transactions that were not reported on a Form 1099-B or a Form 1099-DA.