How do I calculate my tax/cost basis for the existing house sale? The basis is the total of the cost of the purchase price + cost of purchase + cost of improvements + holding costs + cost of sale.
How do I calculate my tax/cost basis for the empty parcel? You will need to use any reasonable method you can support to divide the cost between the land only and the land with the house on it.
Is there more than one way to do this? (ie tax assessed value vs actual value? The county does separate land/tax values that I could use for a ratio, but I could also use the actual house sale price right?) Use any reasonable method you can support in an audit ... I would use the ratio on the county tax bill as it is easy to use and supportable however you do not need to use it. Remember the house sale is going to be short term and the land most likely long term sales.
