Sold my rental property and land

Forum|Forum|3 years ago
January 31, 2023
1 reply
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I acquired a small home on six acres in 2012 and immediately began renting the home. We decided to sell the house and 1 acre and then sold the remaining 5 acres to another buyer. I had the five acres surveyed out of the original plot. Can I lump both sales together seeing that the property has been a whole the entire time I've owned it? Or, should I list the house and 1 acre as the sale of the rental property and list the sale of the 5 acres as the sale of an investment property? Please help! I'm in Tennessee so there are not any state taxes to worry about.

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Mike9241

since the rental property sale reporting is through schedule E while the land sale would be reported through the 8949, I would not lump them together. also if you got a 1099-S for either or both sales lumping could cause matching issues.

MisterB1Author

Thank you for your feedback! I was leaning in this way. Seeing that I did get two separate 1099-S documents, I though it could potentially cause a red flag after being submitted as only one transaction. Thanks again.