How do I report the sale of vacant land in another state?

[Coleen3]

You may need a state return if you had a gain. If that is the case set up the information in Personal Info that you had income from another state first, so that the information can transfer from what you enter below.

Sale of land gets reported in TurboTax as a sale of an investment.

• Within your return, select Federal Taxes tab
• Select Wages & Income tab
• On "Your income" page, click Start button for Stocks, Mutual Funds, Bonds, Other
• On "Did you sell any investments in 2017?", click on Yes button
• On next page, answer whether or not you received a 1099-B or a brokerage statement for the sale
• On next page, "Choose the type of investment you sold", select radio button for Land and click on Continue button
• Enter the details of your land sale on the next page, "Enter Land Sale Information" and click on Continue button
• On next page, select radio button for the way in which you acquired the land and click on Continue button
• On next page, "Any Business or Rental Use?", indicate how you used the land and click on Continue button
• On next page, "Enter Cost Information", enter Date Acquired and Original Cost and click on Continue button
• TurboTax will then calculate your gain on the investment in land, indicate whether it's short- or long-term, and indicate your Proceeds and Cost Basis
• You can proceed further and add any additional similar investment sales in like fashion

[wtownsfma]

I sold the land from the state of Louisiana. Does this mean I have to filed a Louisiana state tax return, even though I live in Virginia? 

[RobertG]

Yes, you probably have to file a Louisiana return.

The Louisiana Department of Revenue website states:

Louisiana residents, part-year residents of Louisiana, and nonresidents with income from Louisiana sources who are required to file a federal income tax return must file a Louisiana Individual Income Tax Return.

@wtownsfma

[ddhubbard67]

What if you didn't make a profit?  Do you still have to file a return in that state?

[RobertB4444]

Yes, most likely.

Different states have different rules so you should check the rules for the state in question.  But the only way for the state to know that you didn't have a profit is for you to tell them.  If you don't say anything then the default assumption for taxing authorities is that you owe them money.

[mightynuke]

I sold 2 vacant lots in Florida.  I live in New Mexico.  Net gain was $2000.   A 1099-B was used by the broker.  I paid NM state income tax.  Do I also have to file a Florida State Tax return? 

[PattiF]

No, you do not have to file a Florida State Tax return. There is no Florida capital gains tax or any state income tax for individuals in Florida.

@mightynuke 

[mightynuke]

Many thanks for your reply.  I knew FL didn’t have personal income tax but I was unsure about whether I’d owe Cap. Gains.  You’ve answered that question.  Thumbs up!

[mightynuke]

My Cap. Gain (on the sale of the 2 FL lots) rolled over to my NM state return - per Turbo Tax.  I guess I’m liable for that, right, even though the gain was obtained in Florida.  

[MayaD]

Yes, as resident of NM you pay tax on all your income from all sources. 

[jenw815]

I did not receive a 1099-S for the sale of land in West Virginia in June 2024.  I lived in Virginia at the time, but moved last fall (Sept 2024) to Delaware.

How do I need to enter the sale of land?

[LeticiaF1]

You would need to file a nonresident return for West Virginia to report the sale of the land.  If you didn't live in West Virginia, and you had money from West Virginia, you have to file a tax return.  You also will have to file part-year returns for Virginia and Delaware. 

To report the sale of the land you will need TurboTax Premium.  See the steps below on hot to enter the sale: 

1. Open  your return
2. Navigate to the sold second home screen:
   • TurboTax Online/Mobile: Go to sold second home.
   • TurboTax Desktop: Search for sold second home and select the Jump to link.
3. Answer Yes on the Did you have investment income in 2024? screen, then Continue.
   • If you land on the Your investments and savings screen, select Add Investments.
4. Follow the onscreen instructions.

2024 West Virginia Personal Income Tax Forms & Instructions

Where do I enter the sale of a second home, an inherited home, or land on my 2024 taxes?

@jenw815