I purchased unimproved land in 2001 for $85000. In 2017 I sold the land without improving it for $110000 not including real estate fees. Where do I claim this income?

[DS30 · Accepted solution]

It depends - 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.)

 To enter the sale of a capital asset in TurboTax, log into your tax return (for TurboTax Online sign-in, click Here and click on "Take me to my return") type "investment sales" in the search bar then select "jump to investment sales". TurboTax will guide you in entering this information.

Choose “Stocks, Mutual Funds, Bonds, Other” and select “start’ (or “update” is you have already worked on this section)

1. 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)
2. Since you did not receive a 1099-B, answer “no” to the 1099-B question
3. Choose type of investment you sold - select Land
4. Some basic information:
1. Description –  Usually the address of the property sold
2. Sales Proceeds – Net proceeds from the sale  (If your 1099-S doesn't include selling expenses, click to add selling expense here (even though it said 1099-B, add additional selling expenses here)
3. Date Sold – Date you sold the property
5. Tell us how you acquired the property - purchased
6. Any business or rental use? - if no, then select personal use only
7. Some Basis information
1. Date Acquired
2. Original cost basis