The calculations/comments by @DianeW777 are correct. Your deferred gain in connection with the sale of Lot 2 was $190,000. The $190,000 was realized but not recognized, and that amount was added to the cost basis of $70,000, and the resulting number was $260,000. As you explained in your post, you added $60,000 of your own funds to complete the purchase of Lot 3. Therefore, the cost basis of Lot 3 is $130,000, of which $70,000 is the former adjusted cost basis of Lot 2, and $60,000 of which is your own funds. The realized but not recognized gain of $190,000 is deferred. Thus, the cost basis in Lot 3 is $130,000.
@user4531223
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