Yes, inheritance matters. It is always considered as held long term which provides favorable capital gain treatment if applicable.
Also, the fact that it was inherited means that you would have had a cost basis based on fair market value (FMV) of the property on the date of death of the previous owner. Since the sale did not occur in 2024, it's likely there is nothing to report on the 2024 return. If you were the actual owner of the property, based on the documentation and amortization schedule then you may need to report the sale in the year of deed transfer.
If you never reported the sale of the acreage either in the year of sale or as an installment sale, then the original sale date is when it should have been reported on your tax return, again depending on your written agreement, .
If the sale price was very close to your cost of FMV at the time of the sale, then it's likely there was little to no gain on the sale. Your stepped up basis would be an important factor, as well as timing. The sale price can be considered as FMV if it was sold fairly close to the death of the former owner. Also, you could increase your cost basis by any selling expenses.
Check the numbers, and check your documents. If there was a loss, and it is beyond the three year statute for amending a return, there is nothing to do. If there happens to be a gain then you may need to amend your prior year return, or add it to the current year.
As you indicated the interest was reportable each year it was received.
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