Capital gains and losses

[bwyld]

I have a 1099-S reporting the sale of land. I entered in the sales price in the investment income section under Stocks, Mutual Funds, Bonds, Other and the cost basis, sum of the original price plus improvement costs.  These are added into the Schedule D as a net capital gain. Do I need to prepare a separate listing of what is included in the cost basis?  i.e. all the items that produce the combined cost basis.

[ColeenD3 · Accepted solution]

No, this is not included on the return, but it is a good idea to keep that information in your records.

[bwyld]

Does that mean it doesn't have to be filed with the return.  Only the net numbers on Schedule D?

[LoganathanB · Accepted solution]

Yes, only the numbers on Schedule D need to be entered.

No, you do not have to file how you arrived at the cost. But keep all the necessary documents with you. You can submit them in case IRS asks for cost basis calculations.

[Venkata isanaka]

My federal taxes and NJ is showing $2 difference 

[Vanessa A]

This could just be a coincidence.  It does not necessarily mean anything is wrong with your return.

Are your refunds similar to what they normally are?  If they are not, and you did not change jobs or have a change in your filing status or family situation, then you should first go back and double check your entries.

  If they are all correct, then you can compare your 2020 return to your 2021 return.  If you compare each of them line by line, then you will see where the differences could be.  If it makes sense and is in line with what you entered, then you need not do anything.  If it doesn't, then you can revisit that section in TurboTax to review your answers.