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New Member
posted Jun 5, 2019 10:41:07 PM

How to report income from sale of unimproved property in home state of texas

I sold 2 acres of unimproved land, with no structures on it and need to report capital gains.  How do I report it and how is the capital gains calculated?  From when I originally bought the property or from what the current value is compared to what it was sold for?

0 3 1850
1 Best answer
Expert Alumni
Jun 5, 2019 10:41:08 PM

The capital gain on the sale is calculated based on the original cost when it was acquired and it's gross proceeds when it was sold. The current property value is not relevant for the capital gains purposes.  Please follow the steps below to report the sale of land:

  1. Federal Taxes 
  2. Wages & Income
  3. Scroll down to Investment Income
  4. Select Stocks, Mutual Funds, Bonds, Other – indicate that you have not received form 1099-B and continue through the interview. You will be prompted to enter the sale category as “Land”.

3 Replies
Expert Alumni
Jun 5, 2019 10:41:08 PM

The capital gain on the sale is calculated based on the original cost when it was acquired and it's gross proceeds when it was sold. The current property value is not relevant for the capital gains purposes.  Please follow the steps below to report the sale of land:

  1. Federal Taxes 
  2. Wages & Income
  3. Scroll down to Investment Income
  4. Select Stocks, Mutual Funds, Bonds, Other – indicate that you have not received form 1099-B and continue through the interview. You will be prompted to enter the sale category as “Land”.

New Member
Jun 5, 2019 10:41:13 PM

Thank you so much for your reply, I appreciate your quick response.

Expert Alumni
Jun 5, 2019 10:41:13 PM

My pleasure and good luck in 2017!