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dmacalad
New Member

HOW DO I ENTER THE SALE OF A FARM PROPERTY THAT WAS OWNED BY MY WIFE AND I AND ALSO OUR 4 CHILDREN?

 
1 Best answer

Accepted Solutions
maglib
Level 10

HOW DO I ENTER THE SALE OF A FARM PROPERTY THAT WAS OWNED BY MY WIFE AND I AND ALSO OUR 4 CHILDREN?

how old are the children, are they your dependents?  What is the gain on the sale as it can be considered unearned income for kiddie tax purposes...If your dependent child's only income is interest and dividend income (including capital gain distributions) and totals less than $10,500, you may be able to elect to include that income on your return rather than file a return for your child.

You will be best off using the desktop version of turbotax so you can file multiple returns with only 1 program, Up to 5 can be filed and you can prepare unlimited.

When you dispose of property used in your farm business, your taxable gain or loss is usually treated as ordinary income or capital gain (under the rules for section 1231 transactions). Ordinary income is taxed at the same rate as wages and interest. Capital gain is generally taxed at lower rates. When you dispose of depreciable property (section 1245 property or section 1250 property) at a gain, you may have to recognize all or part of the gain as ordinary income under the depreciation recapture rules. Any gain remaining after applying the depreciation recapture rules is a section 1231 gain, which may be taxed as a capital gain. 

  1. Go to the Federal Taxes category at the top of the window.
  2. Choose the Wages and Income subcategory.
  3. In the list of "Your Income", find the section labeled "Investment Income" and click "Show More". If the Investment Income is not there, there should be an option to "Add Income" which will generate a larger list.
  4. Click start or update next to Stocks, Bonds, Mutual Funds, Other.
  5. Answer yes to the question "Did you sell any investments in 2018?"
  6. You will need to upgrade to TurboTax Premier at this point.
  7. Answer no, you did not receive a 1099-B.
  8. Choose Land as the investment you sold.
  9. Enter your sales proceeds and cost basis information in the subsequent screens and complete.


If this is your farm and you file a schedule F:

The sale of your farm should be entered under the Schedule F, profit or loss from farming, for any piece of the farm property (and/or equipment included in the sale) that is listed in that section of the return. First, you must determine the sales price for each asset, including your home.

You can use the fair market value (not appraised value) for each asset that was part of the sale and you can use the tax assessments to figure out the value of the land, farm buildings and home.  Once you determine the value of each asset add them together, then divide each one by the total to find the percentage.  Use that percentage by multiplying it by the full selling price to arrive at the selling price for each asset.

  • Search for farm income > Jump to farm income
  • Edit your farm > Update farm information to select "I sold or otherwise disposed of .....in 2018"
  • Go back to select Farm Assets and go through each one to mark it sold in 2018
  • Click the images attached to enlarge and view for assistance

For farm assets that are no longer listed in the farm section please use these steps.

  • Search for sale of business property > Jump to sale of business property
  • Continue to enter your sales (includes business land if applicable)
**I don't work for TT. Just trying to help. All the best.
***Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"

View solution in original post

7 Replies
maglib
Level 10

HOW DO I ENTER THE SALE OF A FARM PROPERTY THAT WAS OWNED BY MY WIFE AND I AND ALSO OUR 4 CHILDREN?

how old are the children, are they your dependents?  What is the gain on the sale as it can be considered unearned income for kiddie tax purposes...If your dependent child's only income is interest and dividend income (including capital gain distributions) and totals less than $10,500, you may be able to elect to include that income on your return rather than file a return for your child.

You will be best off using the desktop version of turbotax so you can file multiple returns with only 1 program, Up to 5 can be filed and you can prepare unlimited.

When you dispose of property used in your farm business, your taxable gain or loss is usually treated as ordinary income or capital gain (under the rules for section 1231 transactions). Ordinary income is taxed at the same rate as wages and interest. Capital gain is generally taxed at lower rates. When you dispose of depreciable property (section 1245 property or section 1250 property) at a gain, you may have to recognize all or part of the gain as ordinary income under the depreciation recapture rules. Any gain remaining after applying the depreciation recapture rules is a section 1231 gain, which may be taxed as a capital gain. 

  1. Go to the Federal Taxes category at the top of the window.
  2. Choose the Wages and Income subcategory.
  3. In the list of "Your Income", find the section labeled "Investment Income" and click "Show More". If the Investment Income is not there, there should be an option to "Add Income" which will generate a larger list.
  4. Click start or update next to Stocks, Bonds, Mutual Funds, Other.
  5. Answer yes to the question "Did you sell any investments in 2018?"
  6. You will need to upgrade to TurboTax Premier at this point.
  7. Answer no, you did not receive a 1099-B.
  8. Choose Land as the investment you sold.
  9. Enter your sales proceeds and cost basis information in the subsequent screens and complete.


If this is your farm and you file a schedule F:

The sale of your farm should be entered under the Schedule F, profit or loss from farming, for any piece of the farm property (and/or equipment included in the sale) that is listed in that section of the return. First, you must determine the sales price for each asset, including your home.

You can use the fair market value (not appraised value) for each asset that was part of the sale and you can use the tax assessments to figure out the value of the land, farm buildings and home.  Once you determine the value of each asset add them together, then divide each one by the total to find the percentage.  Use that percentage by multiplying it by the full selling price to arrive at the selling price for each asset.

  • Search for farm income > Jump to farm income
  • Edit your farm > Update farm information to select "I sold or otherwise disposed of .....in 2018"
  • Go back to select Farm Assets and go through each one to mark it sold in 2018
  • Click the images attached to enlarge and view for assistance

For farm assets that are no longer listed in the farm section please use these steps.

  • Search for sale of business property > Jump to sale of business property
  • Continue to enter your sales (includes business land if applicable)
**I don't work for TT. Just trying to help. All the best.
***Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
dmacalad
New Member

HOW DO I ENTER THE SALE OF A FARM PROPERTY THAT WAS OWNED BY MY WIFE AND I AND ALSO OUR 4 CHILDREN?

My children wee all adults at the time of the sale. Their total ownership of the property amounted to 72%. They file their own returns. My question relates to how I report the sale on the return of my wife and I?
maglib
Level 10

HOW DO I ENTER THE SALE OF A FARM PROPERTY THAT WAS OWNED BY MY WIFE AND I AND ALSO OUR 4 CHILDREN?

do you file a schedule F for the farm income normally?
**I don't work for TT. Just trying to help. All the best.
***Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
dmacalad
New Member

HOW DO I ENTER THE SALE OF A FARM PROPERTY THAT WAS OWNED BY MY WIFE AND I AND ALSO OUR 4 CHILDREN?

There was no farm income, it was essentially unused farmland
maglib
Level 10

HOW DO I ENTER THE SALE OF A FARM PROPERTY THAT WAS OWNED BY MY WIFE AND I AND ALSO OUR 4 CHILDREN?

ok then part 1 works....  I guess it's good if someone who operates a farm sees the response, can't hurt with extra info. All the best in completing your return.  you will only enter yours and your wifes portions on your returns...
**I don't work for TT. Just trying to help. All the best.
***Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
dmacalad
New Member

HOW DO I ENTER THE SALE OF A FARM PROPERTY THAT WAS OWNED BY MY WIFE AND I AND ALSO OUR 4 CHILDREN?

Thanks
dmacalad
New Member

HOW DO I ENTER THE SALE OF A FARM PROPERTY THAT WAS OWNED BY MY WIFE AND I AND ALSO OUR 4 CHILDREN?

Thanks

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