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House burnt down. The next year I sold the land at a gain. No Form 1099-S was received. Can I reduce the new house basis or is this taxable gain?
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June 4, 2019
12:56 PM
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Edited 3/11/18
The sale of the land would generally be a gain but see further answers below. Your house that was burnt by file should have been reported as a Casualty and Theft to recoup any amount that the insurance company did not reimburse.
June 4, 2019
12:56 PM
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I don't understand your answer on the land gain? Is it taxable and where do I report the gain? Or, do I reduce the basis in the new house?
June 4, 2019
12:57 PM
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Edited. It may be an optionsince the house/land would generally be valued together.You do not reduce the basis of the new house. The two properties have nothing to do with each other.
June 4, 2019
12:57 PM
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If no 1099-S was issued was this your personal residence prior to the fire ? If so did you profit more than $250K ($500K married) ? And did you live in the home for more than 2 years out of the last 5 prior to the sale?
June 4, 2019
12:57 PM
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This was my personal residence prior to the fire. The profit was less than $500,000. Yes we lived in the house 30 years before the fire.
June 4, 2019
12:57 PM
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Then you have nothing to report on a tax return. What you did with the proceeds of the home is not material, has not been for more than 20 years.
June 4, 2019
12:57 PM