A friend and I purchased a lot with the intent of building on Aug 15 2005 for $6500. We never built and we sold in 2022 for $25000. How do I report this?

[Critter-3]

Did you each get a 1099-S at closing or did only one of you get that form ?

[ErnieS0 · Accepted solution]

You and your friend will report your share of the sale as a sale of investment property. For example, if you were 50/50 investors, you would each report a sale price of $12,500 and cost of $3,250. Since you made a profit and owned the land for more than a year, you would each pay capital gains tax.

In TurboTax Premier:

1.  Type land sale in Search in the upper right
2. Select Jump to land sale
3. Say YES to Did you have investment income in 2022?
4. Continue past Get ready to be impressed
5. On Let’s import your tax info go to the bottom and select Enter a different way
6. On OK, let's start with one investment type, select Other, then Continue
7. On Which bank or brokerage is on your 1099-B? fill in the info, then Continue
8. Type in a description in Tell us more about this sale
9. On Now, enter one sale for [your description]
10. In the box What type of investment did you sell? Choose Land (other investment purpose) and fill in the rest of your info.