Hello. I am trying to calculate capital gains tax for my home that I sold. I bought the lot 10 years ago, then built a home 5 years ago. Do I get to include the lot?

[PagosaPastor]

If I bought the lot 10 years ago, paid cash for it, then built the home with a construction loan 5 years ago, then sold it in 2021, do I get to include the cost of the lot in my cost basis?

[Cynthiad66]

Yes.  The cost of the land is a part of the basis for the property in computing your gain/loss.

Your land plus any improvements to the land and the cost of the home and all improvements are included in determining the basis of property sold.

Report sale of house

• Click on Federal Taxes (Personal using Home and Business)
• Click on Wages and Income (Personal Income using Home and Business)
• Click on I'll choose what I work on (if shown)
• Scroll down to Less Common Income.
• On Sale of Home (gain or loss), click the start or update button.