Selling inherited property
I am selling half of raw pasture land that I have inherited. Would it be a short or long-term capital gains tax?
Answers
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If you sold a vacation home, investment property, or land, you can enter this sale in the software! To enter it, go to the "Income" tab > "Investments and Savings" section, then click to add another investment.
Because it was land sold, you can choose the "Other sales" option.Examples of other investments sold include:
- Vacation Homes
- Land
- Precious Metals
- Collectibles
- Qualified Opportunity Funds (QOF)
You can continue through the screens and enter the information, making sure to indicate that the investment (land) was inherited.
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hello
The question I was asking had to do with property I inherited!
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would the Tax on the sell of the property be a short or long term capital gain tax??
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"Generally, if you disposed of property that you acquired by inheritance, report the disposition as a long-term gain (or loss) regardless of how long you held the property." Instructions for Form 8949 (2023) | Internal Revenue Service
When reporting this inside the "Income" tab > "Investments and Savings" section. On the page that request the date sold, answer "No" to the question "Did you acquire this investment on a specific date?".
Then from the new options below you will select "Inherited".
When you select "Inherited" the software will automatically report the sale as a long-term capital gain or loss.
