Q. We owned home on 40 acres. We sold the home with 10 acres in 2022. We sold 10 acres in 2023 and 20 acres in 2024. Does the land sold in 2023 and 2024 qualify for the home sale exclusion?
A. Yes. But the 2024 sale must occur within 2 years (730 days) of the 2022 sale. Furthermore the total gain exclusion on the three sales can not exceed the $250,000 ($500K Married filing jointly) limit.
Reference: https://www.nolo.com/legal-encyclopedia/tax-exclusion-vacant-land-around-home.html
