I own a subdivision (with 10 remaining unsold lots) which I sold this year, 2023. I am using Turbo Tax Home and Business and am trying to find where I enter the sale information. I have a schedule C set up in Turbo Tax in which I have been reporting income and expenses. Can someone assist me with this? Thanks in advance.
Thanks for your inquiry. I am not a real estate dealer. In TurboTax I have a 2022 ending inventory of approximately $128,000 for all 10 lots. I sold the subdivision for $145,000. (There are other expenses too.)
Thanks again for your help.
The underlying question is: are you a business or are you an investor. You said: "I have a schedule C set up in Turbo Tax in which I have been reporting income and expenses." That seems to indicate that you are a business. You will enter the sale amount $145,000 as income received and the $128,000 basis as "cost of goods sold" (COGS). The other expenses will be entered as business expenses. The profit will be taxed at ordinary income rates, not as a long term capital gain.