How Do I enter the sale of farm land? It won't go on an asset entry sheet because it doesn't depreciate

[cpapuffer]

Yup ... you can enter it on the asset entry sheet ... just need to enter cost as 'cost or other basis' AND again as 'land included in cost'.  Then, drop down to dispositions and enter the 'land sales price' . Gain will show up on 4797.

[dd4vols]

Schedule D

[gfpstaxes]

What type of asset should it be?

[gfpstaxes]

ProSeries won't let me enter the same amount in 'cost or other basis' AND 'land included in cost'

Perhaps I should explain that the farm is on 16 acres of land, but they only sold 5 acres of it.

[cpapuffer]

In the case of not selling it all, enter only the 5 acres cost (basis) and the purchase date along with the sales price for those 5 acres. You can enter the remaining 11 acres as another asset entry since you know its purchase date and as basis for future sales.

[gfpstaxes]

But what Asset Type?

If I put X "non-depreciable asset" then ProSeries won't accept a disposition date.

But if I put it as any other type, ProSeries tells me the land price cannot be the same as the entire basis.

[dd4vols]

You DON}"T have to set it up in the Asset Entry worksheet.  Just put the sales and basis info on Schedule D!  I live in a rural area...this is the proper treatment for the sale of land...no matter if it's short-term or long term..

Keep a note in your file for the remaining basis of the land not sold, for future use.

[gfpstaxes]

The reason I didn't try that is because it was a business "asset" and the sale should be reflected on their schedule F.

[sjrcpa]

Sales of assets used in farming do not get reported on Sch F (except for raised livestock). I would go with Form 4797.