I sold 2.55 acres of inherited land. I sold it for less than its value. $16,000.00. I am on disability retirement. How do i claim this on my taxes? Do i owe taxes on it?

[MichaelL1]

Yes, the land sale needs to be reported.  The good news is there should be a small gain or loss as the cost basis of the land to you is the Fair Market Value at the date of death. 

You would report the sales price and then take any selling costs, such as sales commissions.

If you do not report it on your tax return, the IRS could come back and tax you on the $16,000 as they would give you a $0 cost of the land.  So report it. 

The cost would be as stated above the FMV at the date of death.  

Enter in TurboTax as follows:

To enter your Inherited land 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