I sold a piece of land, a vacant lot, and received form 1099-S. All that is being asked in Turbo Tax for income is did I sell a house. Where do I enter this sale of land?

[Profman01]

I am going through the step by step process and never came to a question about the sale of land, or anything else about receiving form 1099-S, except sale of home. This was not a house, just a piece of land. Where/how do I enter it into Turbo Tax.

[DoninGA · Accepted solution]

To enter an investment sale other than from a brokerage account (1099-B), follow the steps below.

• Click on Federal Taxes (Personal using Home and Business)
• Click on Wages and Income (Personal Income using Home and Business)
• Click on I'll choose what I work on (if shown)
• Under Investment Income
• On Stocks, Mutual Funds, Bonds, Other, click the start or update button

Or enter investment sales in the Search box located in the upper right of the program screen.  Click on Jump to investment sales

On the next screen, click Yes

On the next screen, click No

On the next screen, choose Land and continue with the section until it completes.

[moharun]

The questions asks about 1099-s

[Cynthiad66]

Form 1099S is entered using the following instructions

This should be posted in the investment section:

1. Start with INCOME
2. I'll choose what I work on
3. Scroll down to Investment Income
4. Select Stocks, Mutual Funds, Bonds, Other
5. Add sales
6. No you did not get a 1099-B
7. Choose the type of Investment you sold (Everything Else)
8. Enter Description, Sale price and Date Sold
9. You probably originally purchased the property
10. The Cost Basis may be calculated as a % of the total property, also enter date of purchase.

[moharun]

Thanks!!!!

I did just as suggested.  Cheers

[michaelwolf72]

I have a similar issue.  I upgraded to Premier because that was recommend to deal with the sale of a vacant lot (1099-S) and post upgrade the interface did not change.  Clicking on the help center does not answer anything.  Following the instructions provided as an answer to this thread, does not help.  This issue is a common example of the limited and ineffectual help provided by the "Help Center" within Turbo Tax. 

[moharun]

Form 1099S is entered using the following instructions

This should be posted in the investment section:

1. Start with INCOME
2. I'll choose what I work on
3. Scroll down to Investment Income
4. Select Stocks, Mutual Funds, Bonds, Other
5. Add sales
6. No you did not get a 1099-B
7. Choose the type of Investment you sold (Everything Else)
8. Enter Description, Sale price and Date Sold
9. You probably originally purchased the property
10. The Cost Basis may be calculated as a % of the total property, also enter date of purchase.

[moharun]

turbotax Deluxe

Form 1099S is entered using the following instructions

This should be posted in the investment section:

1. Start with INCOME
2. I'll choose what I work on
3. Scroll down to Investment Income
4. Select Stocks, Mutual Funds, Bonds, Other
5. Add sales
6. No you did not get a 1099-B
7. Choose the type of Investment you sold (Everything Else)
8. Enter Description, Sale price and Date Sold
9. You probably originally purchased the property
10. The Cost Basis may be calculated as a % of the total property, also enter date of purchase.

[LeonardS]

To report the sale of your vacant land in TurboTax follow these steps:

1. Open or continue your return
2. In the search box, enter sold second home 
3. Click on Jump to sold second home in the results box
4. On the page Did you sell any of these investments in 2021?  Answer yes
5. On the page OK, let's start with one investment type check the Box for other
6. On the page Tell us more about this sale enter “sale of vacant land” in the Name box
7. Answer all the questions on the page Now, enter one sale for sale of vacant land Enter the gross 1099-S in the Proceeds box and your basis in the Total amount paid box
8. On the page Let us know if any of these situations apply to this sale check the box you paid expenses and enter your sale expenses
9. Continue to the page Your investment sales summary where you will see your Total gain if any on the sale of your vacant home.

Vacant land not used for investments purposes is personal use of a capital asset. A gain on the sale is reportable income, but a loss is NOT deductible

This link Where do I enter the sale of a second home, an inherited home, or land on my 2021 taxes? has information you may find useful.@moharun

[jabbanut]

Thanks, LeonardS. The concern I'm seeing with Turbo Tax is there is no differentiation of the 1099b and 1099s. When I'm in sale of stocks, bonds and investments and click on "1099s/other it leads me through a series of questions. Nowhere does it ask to enter the 1099s and in the end, on the tax form it spits out a 1099B and states Long form "f". No where does it mention the 1099 S on my tax report and if the IRS received a 1099S but my tax return does not reflect that...in my mind that's a red flag. I have spoken with 4 different Turbo Tax representatives about this and no one has an answer. I keep getting passed around. 

Feels like a glitch in the software this year.

[PattiF]

There is no section in TurboTax to directly enter the information from the 1099-S. This is also the way tax software is coded by most if not all other tax software including the pricey Ultra Tax. Form 1099-S is used to report the proceeds from the sale or exchange of real estate and certain royalty payments. This includes transactions that consist of sale or exchange for money, indebtedness, property, or services of any present or future ownership interest in: Improved or unimproved land, including air space. The lack of a 1099-S in your tax return does not raise a red flag for the IRS.

You will enter the information from the 1099-S and your information about the date of purchase and the cost basis of the home that you have from your records. 

@jabbanut

[cbrisinger]

This does appear to be a glitch in the TurboTax Desktop Home & Business version for the tax year 2021. As of July 22, 2022, the Investment Sales section will only let you input 1099-B type transactions. The Investment Sales section does not allow you to choose Land or Something Else like it did in the past. The only place I have found to enter a 1099-S transaction is in the Business Income and Expenses section, Less Common Business Situations, Sale of Business Property. I have no idea if TurboTax is aware of this glitch or whether they will correct it with an Update. 

[Mike9241]

pretend you got a 1099-B and use that if the land was held for investment purposes.  the reporting is the same as if you sold a stock.  the type would be E (assuming long-term) sales proceeds but not basis reported to IRS.   you are correct there is no separate worksheet to enter a 1099-S

unless you are selling your home or possibly vacant land that has been used as part of the principal residence. the land must be adjacent to the land containing the dwelling unit and if you meet the home sale exclusion rules you can use it for the sale of the vacant land or you can elect out.   unless you elect out you use the home sale worksheets. 

[cbrisinger]

Thanks, Mike9241. I agree. Pretending to receive a 1099-B is a workaround but it is still a glitch in the Software. This section is definitely different than it was in past years. I have been using TurboTax for years and I have had other sales of Real Estate held as an Investment (not for Personal Use). In past years, this Investment section has allowed me to state that I was selling Something Else. But in 2021, the only option is to report the Sale of Investment Real Estate as if it were the Sale of Stock. I reached out to TurboTax yesterday by phone and they agree that this section is not working the way it should. As a matter of fact, when you click on Learn More in this section:

What are Investment Sales?

Investment income is from selling various investment properties, such as:

- Stock shares
- Mutual fund shares
- Bonds
- Real estate, second home or land (not your main home)
- Property not used in a business or as a rental
- Collectibles, such as coins, stamps, antiques, and art work
- Other personal investments

What Paperwork Do I Need?

- This income is usually reported on Form 1099-B or on a consolidated broker's statement.
- The income from the sale of land or a 2nd home is usually on Form 1099-S.

[MGanahl]

I have similar issue, I upgrade to  Business The program does not let me fill out the 1099-S Form