Land Sale

[ruthc]

Have a TP (and his sisters) that acquired land from his parents. It appears it was a gift. I am still trying to get all the facts from the TP (it's like pulling teeth). I want to make sure I get all the questions that I need answers to before getting back to him. He is in the process of selling the land and wants to make an estimated payment on the gain (he says it is about $22K). What info do I need? I know I need the basis at the time of the transfer. Would I need the FMV at that time also? I've done sale of homes but not just land.
Thanks for you input!!

[Gary2]

Have a TP (and his sisters) that acquired land from his parents. It appears it was a gift. I am still trying to get all the facts from the TP (it's like pulling teeth). I want to make sure I get all the questions that I need answers to before getting back to him. He is in the process of selling the land and wants to make an estimated payment on the gain (he says it is about $22K). What info do I need? I know I need the basis at the time of the transfer. Would I need the FMV at that time also? I've done sale of homes but not just land.
Thanks for you input!!

In general, you need both, as well as whether any gift tax was paid. If it's obviously a profit when using the basis, and there was no gift tax paid, then the FMV becomes irrelevant.

[ruthc]

What form to use

And what tax form would I complete to flow to schedule D? It would be long term. Thanks for the info!

[Burke]

A sale of land goes directly on Sche D. No other form necessary.

[ruthc]

Thank You!!!

Thanks a lot for the info!

[Gene V]

A sale of land goes directly on Sche D. No other form necessary.

I would put the sales on Form 8949 first, than transfer to Schedule D.
What do you think?

[Burke]

Yes, that is correct, in that basis would not have been reported to the IRS, and possibly that no 1099-S was issued at all. I thought she was talking about some other form because of the gift aspects.

[ruthc]

Burke

Burke - did you receive my email?

[Burke]

See my PM to you.

[ruthc]

Burke

Sent you a PM message.