I sold 2 vacant lots in 2020 adjacent to, but not part of my home. I've paid property tax on both for 10 years, so there was little if any profit. do I claim the sale?

[Mike9241]

 you can deduct on Schedule A the real estate taxes that have been assessed and paid on all properties that you own, including any unimproved lots.  (subject to any limits from 2018 -2025 on dedctiblity of schedule a taxes

instead of claiming a current deduction, you can elect to “capitalize” (add to the cost basis) any real estate taxes paid on unimproved and unproductive land (i.e., a vacant lot) held for investment. A statement must be attached to the original Form 1040 for each year that the election is made. IRS REG 1.266(c)(3)

If the taxpayer elects to capitalize an item or items under this section, such election shall be exercised by filing with the original return for the year for which the election is made a statement indicating the item or items (whether with respect to the same project or to different projects) which the taxpayer elects to treat as chargeable to capital account.

if you failed to include the election each year yo should have deducted the taxes.  thus they would not add to basis to reduce gain.  if you failed to included the election you may want to consult a tax pro as to options.   worse case is that  none of the taxes add to basis so you gain would be selling price less selling costs less original cost 

[DavidD66]

If you did not take any tax deductions for the property tax on the two vacant lots, you can increase your basis in the properties by the amount of the property tax paid.  This will reduce your gain, or possibly result in a loss.  If you did take tax deductions, then you cannot adjust your cost basis.  

You will report the sale in the same section in which you report stock and other investment sales.  To enter: 

• Type "Investment sales" in the search window and click Enter
• Click on "Jump to Investment sales"
• On the page with "Did you sell any investments in 2020?"  Answer Yes
• Answer No to "Did you receive a 1099-B..."
• Enter the name of the person or financial institution that brokered this sale
• On the page with "Now we’ll walk you through entering your sale details" for "What type of investment you sold" Indicate "Land"
• The interview will walk you through entering the details of the sale

[ColeenD3]

Yes, you must include the income, regardless of the amount of gain.