@sharedvisions-co wrote:
If I buy a home and subsequently make improvements I would not for tax purposes bifurcate the home purchase and improvements for different holding period treatment. The improvements would increase the cost basis but the initial home purchase would start the holding period calculation. So, would the construction of the house be an improvement to the lot and therefore the holding period starts with the purchase of the lot?
But it IS two separate things, the building and the land. If you make improvements to the house it is still ONE thing: the house.
When selling real estate used as a rental or for a business, the land IS reported separately from the gain from the building.
