The cost of the new land .2 acres is $25000- sale just completed. the 1.8 acres cost was $45,000 - it is 45% part of our existing property purchased 8 years ago and is being partitioned off with the newly purchase property as a 2 acre lot. We spent $25000 on zoning process to meet county minimum lot size of 2 acres and other requirements.
Would like to sell soonest but want to know tax liability before I jump at offers on table.
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You should prorate the sales price between the first lot and the second lot based on the acreage.
The cost of the zoning process can also be prorated between the two lots and added to their respective cost bases.
Capital gains on the first lot are long-term. Those on the second lot are short-term.
You should prorate the sales price between the first lot and the second lot based on the acreage.
The cost of the zoning process can also be prorated between the two lots and added to their respective cost bases.
Capital gains on the first lot are long-term. Those on the second lot are short-term.
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