Rental Land Sale

[jon371240]

Need some further help adding some clarifications:

Sold land at a profit I was renting out in November.  Acquired via inheritance in 2000.   I know the basis established 2000.  Rental income was received up until the sale.  The land had a commercial building on it I did not own.  Renter paid all taxes and improvements and vacated/abandoned the building upon sale.   There is no depreciated assets involved that I participated in. There has been no mortage.   As preparation for the sale there was an engineering survey paid for by me.  The sale has been reported on a 1099-S.  Closing costs for the sale include realtor's commission, Title and all the normal closing costs.  Using Turbotax Premier, how do I report this rent and the sale taking advantage of all possible deductions?  Thanks.

[M-MTax]

Report the rent on SCH E....I believe TT has a rental section.

Report the sale as the sale of an investment. You have capital gain is all and you can subtract the sales expenses from the gross.

[DaveF1006]

@jon371240 You will report this land sale as an investment sale. Here is how to report.

1. Income and expenses once you open your Turbo Tax program.
2. Investment Income.
3. Did you sell any of these investments in 2021? Say yes
4. Stocks, Cryptocurrency, Mutual Funds, Other (1099-B)
5. Choose the Other option on what type of investment was sold
6. Type in the name of the company when TurboTax requests a name
7. Choose Other for the type of investment sold and answer the questions
8. Next screen says Now we’ll walk you through entering your sale details. Here in the first drop-down, select land(other investment purposes)
9. Next drop down you will indicate you inherited the land.
10. Enter the Proceeds you received equal to the gain you want to report. From the proceeds, you can deduct the engineering survey and other closing costs including the realtor fees to lessen your capital gains tax.
11. Next you will enter the FMV of the land when you inherited it.  

To enter your rental income for the land, go to;

1. Federal>wages and income
2. Go to Rentals, Royalties, and Farm>Rental Properties and Royalties (Sch E
3. Finish out the section.  Make sure when it asks what kind of rental it is, indicate land.

[ Edited 01/31/22| 07:52 PMPST]