How do we account for proceeds from sale of farm property which was in a trust and inherited from deceased parents?

[lvsawyerjr]

The sale was for considerably more than the property was valued at the time of the inheritance.

[MichaelL1 · Accepted solution]

You would each report your share of the proceeds in the investments section of TurboTax and your basis (or cost) would be value at date of death plus improvements you may have made after date of death.

It would qualify and Long Term Capital gain (due to inherited) regardless of how long you held it. 

Make sure all selling expenses are allocated out among you.

To enter your Investments sold

Click on Federal Taxes

Click on Wages and Income

Click on I'll choose what I work on

Scroll down to Investments

On Stocks, Bonds, Other, click the start or update button

[lvsawyerjr]

How cam we tell if the income amount was treated as long term capital gain?

[MichaelL1]

Short is taxed at ordinary rates, and long term is taxed at more favorable rates.  TurboTax will compute the Long term when you answer that it was inherited, and/or it is shown to held for more than one year.  The following may help. <a rel="nofollow" target="_blank" href="https://ttlc.intuit.com/replies/4790215">https://ttlc.intuit.com/replies/4790215</a>