topic I purchased a parcel of land and subdivided it up. I will be using part for my personal home and the rest for my business. How do I separate this on my taxes? in Deductions & credits

I purchased a parcel of land and subdivided it up. I will be using part for my personal home and the rest for my business. How do I separate this on my taxes?

monks_rock_books — Tue, 10 Mar 2026 07:14:42 GMT

I will be reselling part of the land as raw land and may be building on the other lots. It stated as a 10 acre parcel, and now is divided into 5 lots. We added a well, electric and a road.

Re: I purchased a parcel of land and subdivided it up. I will be using part for my personal home and the rest for my business. How do I separate this on my taxes?

Anonymous_ — Tue, 27 Dec 2022 14:48:28 GMT

Allocate the total cost basis.

@Critter-3

Re: I purchased a parcel of land and subdivided it up. I will be using part for my personal home and the rest for my business. How do I separate this on my taxes?

Critter-3 — Tue, 27 Dec 2022 15:35:36 GMT

Agreed ... all costs must be allocated to all of the lots in some sort of rational ratio that you could support in an IRS audit if needed. For instance if you bought the property for $100K and split it into 5 equal parts they would all be $20K each. Same goes for the land improvements like the road and utilities.