Question

Reporting trust land sale

Forum|Forum|4 years ago
April 12, 2022
1 reply
0 views

First, I apologize for this repeated question, but I cannot find a satisfactory answer. My situation is straightforward. I'm using TT for Businesses to file trust taxes as the successor trustee. In 2021, some land that was held by the trust was sold. I need to know exactly where and how to enter this in TT. Entering it as Rental Property (it was leased for a few months in 2021) that was sold doesn't work, as TT does not ask me anything about the proceeds from the sale. Neither do I see anywhere to enter it as farmland that was sold. I have spent way too much time on this one item, so some help would be greatly appreciated!

Thanks,

John

TurboTax Business Windows

KrisD15

If it was a rental, you would enter it as a rental, report the 2021 income and expenses. Select that it was sold in 2021.

Revisit Rentals, review, select edit next to the property, scroll down to Sale of Property/Depreciation and enter the sale there.

OR since there would be no deprecation involved for land, enter it as a sale of investment, but you would still need to claim the rent income.

Step-by-Step if Desktop

Personal

Personal Income

Investment Income

Stocks, Mutual funds, Bonds, Other

"Did you get a 1099-B" NO

"Tell us about the sale" I'll enter one sale at a time

Enter the information on the drop-down including

Description

Date Sold

Date Acquired

Sale Proceeds

Cost or other basis

Holding Period (short or long)

Continue

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J

JohnT3662Author

I did the following and was not given an opportunity to enter the sale of the land. The bold part does show. I'm totally stumped. Just to confirm, this is TT Business, not personal.

If it was a rental, you would enter it as a rental, report the 2021 income and expenses. Select that it was sold in 2021.

Revisit Rentals, review, select edit next to the property, scroll down to Sale of Property/Depreciation and enter the sale there.

B

Burntside

Trust taxation depends on several things. One of those is whether the Trust is a revocable (grantor) or irrevocable trust. Since you have a 5.6% interest in the trust I am assuming it is an irrevocable trust. An irrevocable trust is required to file a tax return on Form 1041 and issue K-1s to the beneficiaries. If it hasn't already, the Trust should issue you a K-1 reporting any or capital gains taxable to you, as well as non-taxable distributions. You report the K-1 on your personal tax return. It is possible that the Trust paid tax on the capital gains, and it is also possible that you will be responsible for the capital gains tax. I recommend that you contact the Trustee of the trust for information on how the Trust handled the transaction and what you need to do.

Thank you very much for your prompt and thorough response. Very much appreciated.