Solved: A piece of PRIMARY (only) home's lot - just land -...
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A piece of PRIMARY (only) home's lot - just land - was purchased for a state roads project. No investment sale. I was paid for it to offset depreciation of home. Taxed?

 
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Level 15

A piece of PRIMARY (only) home's lot - just land - was purchased for a state roads project. No investment sale. I was paid for it to offset depreciation of home. Taxed?

No.  But, it reduces the cost basis of your home, which is used in calculating your capital gains when you sell.

 

And, if you received a 1099-S for the sale, you must report it.  You would report sale of "something else", the purchase date is the date you bought the home, sale date is the date the lot was subdivided, and purchase price and sales price would be the same number--the amount you received. 

*Answers are correct to the best of my ability at the time of posting but do not constitute legal or tax advice.*

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Level 15

A piece of PRIMARY (only) home's lot - just land - was purchased for a state roads project. No investment sale. I was paid for it to offset depreciation of home. Taxed?

No.  But, it reduces the cost basis of your home, which is used in calculating your capital gains when you sell.

 

And, if you received a 1099-S for the sale, you must report it.  You would report sale of "something else", the purchase date is the date you bought the home, sale date is the date the lot was subdivided, and purchase price and sales price would be the same number--the amount you received. 

*Answers are correct to the best of my ability at the time of posting but do not constitute legal or tax advice.*

View solution in original post

New Member

A piece of PRIMARY (only) home's lot - just land - was purchased for a state roads project. No investment sale. I was paid for it to offset depreciation of home. Taxed?

Thank you, infinity more succinct than the expert I talked to....

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