@Don from NH , like to point out that any gain is based Sales amount ( which is sold price less sales expenses) LESS adjusted basis ( which is acquisition cost plus cost of improvements ). There is no place for current value in this computation. You can quite rightly and with good logic/ comparables prove that portion A of the total is x times more valuable then the remainder of the asset, but your total basis is still based on allocated acquisition cost plus improvements costs. I think the suggestion offered by @KrisD is a very good one --- nothing in the law stops you from doing that. There may be other contortions one can do but for such you need a well paid lawyer to help you avoid pitfalls -- fundamentally you have create losses to reduce your gain so that taxable income is reasonable. Far beyond any of us here , I think. IMHO
pk
