Hello, while we were living in California we bought a vacation home in 2004 for $350,000. Later in 2015, we bought vacant land near the vacation home for $13500 so that we had special HOA amenities. In 2020 we moved to Idaho selling our main residence but kept our vacation home and vacant lot.
Currently, we have decide to sell the California vacation home and vacant lot together as one for $562,500. We are currently in a quick escrow. What led me to ask this question right now is that the Title Company has handed me a 593 to fill out prior to closing (I didn't realize that I would be figuring out my 2024 taxes so early!).
My first question would be as to how do I enter this transaction in TurboTax? Is it listed as a single sale or does it need to be broken out? There were many improvements that would increase my basis on the home whereas no improvements were made on the vacant land.
The second question would be as to how accurate does the 593 have to be? Does it have to match my tax return that I file in 2024 (obviously my tax return next year would include both Idaho and California State filings). The title company has not even given me estimated closing costs yet nor have I fully figured out my cost basis on the vacation home yet. Any help would be much appreciated.
