My client sold vacant land they were holding so they could build on some day. Their plans changed and they sold it. Where do I show this?

[wjh4848]

My client received a 1099-S from the sale.

[IRonMaN · Accepted solution]

Schedule D sounds good.  They sold it for a gain, didn’t they?

[wjh4848]

Thank you.  They sold it at a gain.  The 1099-S through me.

[IRonMaN]

You betcha!

[wjh4848]

On screen 17 (Dispositions) do I put a 1 showing the basis is not reported on the 1099-B to the IRS?  The sale was reported on a 1099-S.

[DSCPA]

If the building was going to be for a rental or to sell, I believe you should put a -1 under "Form 4797:Depreciation Allowed" and type in "1" to designate as 1250 property. If it was to build for personal purposes, I guess just checking 2 under the 1099B question, and leave 4797 alone.