Sold land for a loss, how do I claim it on taxes?

[legloahecl]

I sold investment property at a loss

[DawnC]

Follow the instructions here to report the sale of investment land.     

When you sell a capital asset, the difference between its cost basis and the selling price results in a capital gain or loss.

• A capital gain is when your asset's sales price exceeds its cost basis (in other words, you made money). Capital gains must be reported on your tax return.
• A capital loss is when you sell the asset for less than its cost basis. Capital losses from investments can be deducted, but not those from personal-use assets, such as your home or personal vehicle.

Your total capital gains for the year minus your total capital losses results in either a net capital gain or a net capital loss.

• Short term capital gains (gains on assets held one year or less) are taxed as ordinary income.
• Long term capital gains (gains on assets held more than one year) are taxed at a more favorable rate than ordinary income.
• Net losses are deductible, but only up to a maximum of $3,000 ($1,500 if married filing separately). Any capital losses you couldn't deduct this year can be carried forward and deducted on future tax returns. This is called a capital loss carryover.    TurboTax will complete the required forms after you enter the sale information.  

[Welcome3366]

Do I have to file this year for land sold in October 2021,at a 80,000$ loss.

[DianeW777]

It depends.  Did you live on the land or was it  a separate piece of land not part of your main home?

If the land was investment property and you sold it at a loss, and it wasn't to a relative or related party then you would have a capital loss.  You are allowed to deduct $3,000 per year for any excess losses over gains on sales of investments.

Net capital losses in excess of $3,000 can be carried forward indefinitely until the amount is exhausted. 

Land is considered investment property if it is not part of a home sale.  Land sales are reported by using the following instruction.

1. Federal Taxes tab, then Wages & Income, then scroll down to Investment Income and select Investments and Savings (1099-B, 1099-INT, 1099-DIV, Crypto)
2. Respond "yes" to Did you sell any investments?  You'll then be asked Did you get a 1099-B or brokerage statement? answer "no."
3. Enter one sale at a time
4. Enter Land Sale Information Be aware of the tiny box that says "Reported sales price did not deduct all fees of selling expenses," as it must be checked if applicable to you.
5. Continue to follow the prompts to complete your sale
6. See the image below for assistance.