11 years ago we purchased 2 tracts of land. One has our home. The other was vacant land next to our home that was used for hay and under AG exemption. (We filed as a farm for many years - but could not make it successful so stopped filing that in 2019.) These two tracks were purchased under one balloon price - one mortgage. We sold the 22 acres in 2020 - but for $80,000 less than it appraised (tax appraisal- market appraisal was more). Are we allowed to deduct this for a loss or is it considered personal property? And if we can deduct it how would we determine the purchase price since it was all rolled together with our home?
