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New Member

Sale of investment property (vacant land).

I sold a vacant land in 2018 and have received 1099-S from the escrow company. How do I enter the 1099-S information and the cost basis?

 

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Employee Tax Expert

Sale of investment property (vacant land).

In TurboTax Online Premier:

  1. Click Federal on the left side of your screen.
  2. Go to Wages and Income.
  3. Start Stocks, Mutual Funds, Bonds, Other.

  4. On Did you sell any investments in 2018? say yes.

  5. On Did you get a 1099-B or a brokerage statement for these sales? say no.

  6. On Choose the type of investment you sold choose Land.

  7. Continue with the land sale prompts, and enter your information.

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New Member

Sale of investment property (vacant land).

there are not any place to add land improvements. such as clearing land, hauling rock to fill lots combining lots,

getting address for lots. labor to clear and operator to operate equipment. where do you put that adjustment?

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Expert Alumni

Sale of investment property (vacant land).

The cost of land improvements adds to the total cost of the land it is not a separate number that you enter.

 

Your cost of the land = Cost to Purchase Land + Improvements

 

Link on how to report land sale in Turbo Tax.

 

@hhdwain

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New Member

Sale of investment property (vacant land).

I am preparing a return for our family trust which sold vacant land in December 2019.

I thought the Trust's basis in the vacant land is the step-up basis or value of the vacant land at the date of my father's death?

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Expert Alumni

Sale of investment property (vacant land).

Did your father originally purchase the vacant land?

 

IRS Publication 551 addresses the basis of property.

 

Cost basis of real property is usually its cost.  Other items that could be added to the basis on listed on pages 2 and 3).

 

Inherited from a decedent (pages 9 and 10) is generally one of the following.

  1. The FMV of the property at the date of the individual's death.
  2. The FMV on the alternate valuation date if the personal representative for the estate chooses to use alternate valuation. 
  3. The value under the special-use valuation method for real property used in farming or a closely held business if chosen for estate tax purposes. 
  4. The decedent's adjusted basis in land to the extent of the value excluded from the decedent's taxable estate as a qualified conservation easement.

Perhaps the trust administrator can give further guidance on the basis used?

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