How do I report a land sale of inherited property that was leased to a hunting club for several years after acquiring?

[Lisa995]

Have you been reporting the lease income on Schedule E each year since you started leasing it?

[freemantaber1500]

Yes

[PaulaM · Accepted solution]

Do you have the property listed as a rental in TurboTax?

If so, enter the sales details in the rental section. You have to indicate that the property was sold in two locations (property profile and sale of property/depreciation). See thumbnails below.

You will need the Fair Market Value (FMV) on the date that you inherited the property. This is your cost basis for the inherited land.

If not,  you can enter the sale as a Sale of Business Property under Business Items. Enter the description, date acquired,date sold, sales price (less the expenses), cost (fair market value when you inherited it). The gain/loss will be recorded on Form 4797

[freemantaber1500]

Something has gone wrong, I now have two Schedule "E"s a 4797, 8949.  can I delete them and start over.

[freemantaber1500]

Also, there was no rent received in 2017

[PaulaM]

The sale will generate the Form 4797 and 8949 and you should have 1 schedule E if you had other expenses for the land (property taxes?)

[PaulaM]

Is this your only schedule E property?

[freemantaber1500]

yes

[PaulaM]

Can you go back to the rental section? Type 'schedule e' in the search box, then select the jump to link. On the rental summary page, you should have only one rental property. If you have more than one, walk thru each one to determine which one to remove.

[freemantaber1500]

i don't have a rental section or a jump to link?

[freemantaber1500]

i don't have a rental section or a jump to link?

[PaulaM]

I see that you are using Deluxe. Schedule E is supported in Premier. Are the Schedule E forms a carry over from a prior year? Where did you enter the sale?

[freemantaber1500]

Yes it is a carry over.  I initially tried to do the sale under Schedule E, but when I had answered the question on weather it was a rental, it told me to fill out Form 4797.  The problem with that (I believe) is it deducted all of the loss from my AGI to the tune of $31,000+.  I'm not sure that is allowed?  I went back and changed it to allow me to get to the sale portion.  So went back and deleted 4797 and 8949.  Which is the correct way?