Sale of adjacent lot

Forum|Forum|2 years ago
October 26, 2023
2 replies
15 views

I sold a lot adjacent to my primary residence in 2023 and will receive a 1099. I plan to sell my primary residence within the 2 years.

Both the lot and primary residence fall within the parameters to include both sales as one for income tax purposes.

However, how do I handle reporting the sale of the lot on my taxes in 2023?

Not A Product Question

Mike9241

Level 15

here's an answer I found. it makes since there is no guarantee you'll sell the house.

see if others have a different answer.

If you sell such vacant land before you sell the home it surrounds, the sale will not qualify for the capital gains tax exclusion at that time. But, if you sell your main home within two years after you sold the vacant land, the prior sale will come within the exclusion. In this event, you may amend your return for the prior year and get a tax refund.

Mike9241

SandyWhitAuthor

Level 2

Considering that I will have quite a large capital gain on the sale of the lot, I was hoping there would be a way to defer the tax on the capital gain.