The sale of bare land is considered an investment and the sale is treated as the sale of a capital asset. (However, no capital loss will be allowed on the sale of land that was or would have been used for personal use only.)
Your capital gain will be your net sales proceeds less cost basis. Without a 1099-S from the sale, you will need to just report the money that you received from this sale less selling costs.
Additionally, if this property is not located in your state of residence, you may need to do a nonresident state income tax return to recognize this sale in that other state (income is sourced to where the property is located). You will get a tax credit in your home state (if your home state has an individual income tax filing requirement) for any state income tax paid to another state.
Click this link for further information about reporting the sale of a capital asset
To enter a capital gain or loss on investment land in TurboTax (for TurboTax Online sign-in, click Here), log into your tax return and type "investment income (gains and losses)" in the search bar then select "jump to investment income (gains and losses)". TurboTax will guide you in entering this information (see step 6 below)
To enter your sale of land transaction in TurboTax Online or Desktop, please follow these steps:
- Once you are in your tax return, click on the “Federal Taxes” tab ("Personal" tab in TurboTax Home & Business)
- Next click on “Wages & Income” ("Personal Income" in TurboTax Home & Business)
- Next click on “I’ll choose what I work on” (jump to full list)
- Scroll down the screen until to come to the section “Investment Income”
- Choose “Stocks, Mutual Funds, Bonds, Other” and select “start’ (or “update” is you have already worked on this section)
- The first screen will ask if you sold any investments during the current tax year (This includes any sale of real property held as an investment property so answer “yes” to this question)
- Since you did not receive a 1099-B, answer “no” to the 1099-B question
- Choose type of investment you sold - select Land
- Some basic information:
- Description – Usually the address of the property sold
- Sales Proceeds – Net proceeds from the sale
- Date Sold – Date you sold the property
- Tell us how you acquired the property - purchased
- Any business or rental use? - if no, then select personal use only
- Some Basis information
- Date Acquired
- Original cost basis
Why am I not able to get into where I select land, I only get 1099-B when I say I don't have one, it doesn't ask me what type of sale I want, only goes into stocks, what am I missing..How can I report my investment land I sold nowhere is it asking me type of investment I sold when I follow those instructions...
After you say no to Did you get a 1099-B or a brokerage statement for these sales?
- Next is Tell us about this sale
- Check box I'll enter one sale at a time and Continue
- Then you will see Description (enter Land)
- Enter the rest of the information about the land sale,
- Date sold
- Date acquired
- Sale proceeds and Cost or other basis
Hello - So I did sell land that I owned in Kentucky and I live in Indiana. I received a 1099-S that also contains the filer information. I upgraded to TT Premier Download and have the following questions:
1. Under Personal Information, do I need to choose I had income under another state or just document sale in the Investment section under Income?
2. When inputting sale of land under Investments, I do not see an area to input the Filers information/TIN?
3. When inputting "Land" in the area for Description - will this still generate the correct form for the IRS?
4. Do you have to itemize or can you still take the standard deduction when you have a 1099-S?
Yes, you will report this sale in the following manner.
- You will report that you made money in another state.
- You do not need to report a filers information/TIN. You are the filer and this is your own investment.
- Yes, by indicating land as the investment, the IRS know this is land you sold.
- Whether you itemize or take a standard deduction is not an issue when you file a 1099-S. You are reporting income with it and not taking a deduction.
**Mark the post that answers your question by clicking on "Mark as Best Answer"