A client sold an empty lot that was not used for income and received Form 1099-S. The lot was bought in 2016 for $10,000 and remained empty. Nothing was ever built on it. The grass was cut and property taxes paid on it every year. Last year it was sold for $175,000. After some fees and deductions there's a gain of $160,011.
Where in Proseries do I enter it? Form 4797 Page 1 is for the Sale of a Business Property but the property was not used as part of a business. If I enter the information on Page 2 it asks to selct the type of property (1245, 1250, 1252, 1254, or 1255) but none of those apply.
The best I have been able to figure out is to use Form 8949 and complete the Home Sale Worksheet and indicate that she didn't live in the home. When I do this the gain flows to line 7 of Form 1040.
Am I correct in doing it this way?
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