To report the sale of land in TurboTax, please follow these steps:
- Open or continue your return in TurboTax.
- In the Search box type "investment sales".
- Click the "Jump to investment sales" link in the search results.
- Answer Yes to “Did you sell stocks, mutual funds, bonds or other investments in 2020?”
- On the next screen Click on “Other”.
- On the Screen “Tell us more about this sale” type in 2nd Home and Click on Continue.
- On the “Now We’ll walk you through entering your sale details”, under “What type of investment did you sell?” Select 2nd Home in the dropdown.
- Continue to enter the requested information on the screen(s).
Since you owned this home with your sister, you would be allowed to take 50% of basis as the cost of the property and your sister would use 50% on her taxes.
That sounds fairly simple, but unfortunately I'm not getting the same results. I'm using the Premier version of TurboTax.
1. I search on "investment sales".
2. I click on "jump to investment sales".
3. I see "did you sell any investments in 2020?" and answer "Yes".
4. Next question is 'Did you get a 1099-B or brokerage statement for these sales?". I answer 'No'.
5. Next screen is 'Tell us about this sale'.
- If I click on "I'll enter one sale at a time", I get Box 1a thru Box 1e to fill in that doesn't match the 1099-S form I received.
-If I click on "I'll enter a summary for each sales category", I get three fields:
-1) Total Proceeds (sum of all sales)
-2) Total Cost Basis (sum of all sales)
-3) Holding period
If I go back and answer 'Yes' to 'Did you get a 1099-B...", I provide the bank name and then get the same options to fill in.
What do I do with this?
It sounds like you are in the correct place. In TurboTax Online Premier, I was able to enter a long-term capital gain
on Schedule D of the Federal 1040 by following these steps:
- In the upper right hand corner of the screen click on the magnifying glass Search icon.
- Type sale of second home. Hit enter.
- Click on Jump to sale of second home.
- This should bring you to the screen Did you sell stocks, mutual fuds, bonds or other investments in 2020?.
- Click Yes.
- At the screen OK, what type of investments did you sell?, click Other.
TurboTax will walk you through a series of questions to determine whether the transaction generated a taxable gain or taxable loss. The transaction will likely be reported on Schedule D.
You need to provide these data elements.
- The 1099-S will provide the broker name and EIN.
- The type of investment in the drop-down box is Second home.
- Answer how you received the second home.
- Enter date of receiving the investment and date of disposing of the investment.
- Enter the proceeds of sale and total amount paid which is your basis.
- Click Continue.
You may find that the sale will be taxable income on your home state tax return as well as the on tax return for the state where the building is located. Your home state tax return may allow you a credit for taxes paid to another state.
See also IRS sale of my second residence.
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