Purchased 3 acres in 2016 in Texas. We sold the lot in 2017. Gross Proceeds is 39,500 have a 1099-S for this transaction. How do I report this or do I need to.

The land sale is reported on your tax return.  The Form 1099-S is not reported on the tax return but the information from the Form 1099-S is used to report the proceeds from the sale.

To enter an investment sale other than from a brokerage account (1099-B), follow the steps below.

• Click on Federal Taxes (Personal using Home and Business)
• Click on Wages and Income (Personal Income using Home and Business)
• Click on I'll choose what I work on (if shown)
• Under Investment Income
• On Stocks, Mutual Funds, Bonds, Other, click the start or update button

Or enter investment sales in the Search box located in the upper right of the program screen.  Click on Jump to investment sales

On the next screen, click Yes

On the next screen, click No

On the next screen, choose Land and continue with the section until it completes.