If you sold property that wasn't used for business or investment at a loss, you would need to report the sale if you received a 1099-S for the sale. You won't be able to claim a loss, and your taxes won't change, but you need to report the sale.
You say that you sold the land for less than the assessed value. But did you sell the property for less than your original cost basis?
Gain or loss isn't computed on the assessed value. It's computed on your cost basis, which can be what you originally paid for it, the fair market value of it as of the date of death (if you inherited the property) or the giver's basis (if you received the property as a gift).
Please see this link for more information: https://www.irs.gov/pub/irs-pdf/p551.pdf
To report this sale in TurboTax Premier:
Go to Federal Taxes and Choose Wages and Income (In TurboTax Home & Business choose the Personal tab)
Scroll to Investment income, and choose Stocks, Mutual Funds, Bonds, Other.
On the screen Choose the type of investment you sold choose Everything Else.
On the screen Tell Us How You Acquired This Property choose Inheritance. And continue answering the interview questions.
If you sold property that wasn't used for business or investment at a loss, you would need to report the sale if you received a 1099-S for the sale. You won't be able to claim a loss, and your taxes won't change, but you need to report the sale.
You say that you sold the land for less than the assessed value. But did you sell the property for less than your original cost basis?
Gain or loss isn't computed on the assessed value. It's computed on your cost basis, which can be what you originally paid for it, the fair market value of it as of the date of death (if you inherited the property) or the giver's basis (if you received the property as a gift).
Please see this link for more information: https://www.irs.gov/pub/irs-pdf/p551.pdf
To report this sale in TurboTax Premier:
Go to Federal Taxes and Choose Wages and Income (In TurboTax Home & Business choose the Personal tab)
Scroll to Investment income, and choose Stocks, Mutual Funds, Bonds, Other.
On the screen Choose the type of investment you sold choose Everything Else.
On the screen Tell Us How You Acquired This Property choose Inheritance. And continue answering the interview questions.
Property inherited and fair mkt value determined by professional assessor at time of inheritance. Property sold for less than this fair mkt value this tax yr. TurboTax will display sale on correct form and no extra tax consequences this year?