House burnt down. The next year I sold the land at a gain. No Form 1099-S was received. Can I reduce the new house basis or is this taxable gain?

[Coleen3 · Accepted solution]

Edited 3/11/18

The sale of the land would generally be a gain but see further answers below. Your house that was burnt by file should have been reported as a Casualty and Theft to recoup any amount that the insurance company did not reimburse.

[Dave1040]

I don't understand your answer on the land gain?  Is it taxable and where do I report the gain?  Or, do I reduce the basis in the new house?

[Coleen3]

Edited. It may be an optionsince the house/land would generally be valued together.You do not reduce the basis of the new house. The two properties have nothing to do with each other.

[Critter]

If no 1099-S was issued was this your personal residence prior to the fire ?   If so did you profit more than $250K ($500K married) ?  And did you live in the home for more than 2 years out of the last 5 prior to the sale?

[Dave1040]

This was my personal residence prior to the fire.  The profit was less than $500,000.  Yes we lived in the house 30 years before the fire.

[Critter]

Then you have nothing to report on a tax return.  What you did with the proceeds of the home is not material, has not been for more than 20 years.

[Opus 17]

---

@Caroleg22 wrote:

I am in the same situation. However, I did receive a 1099-S. I bought my house for 150,000 15 years ago and sold the land for 150,000.  Do I have to pay capital gains? 

---

If you received a 1099-S, you must report it on your tax return.  If not, the IRS will assume it was all taxable and assess tax.  However, whether or not there is a taxable gain depends on all the facts and circumstances.  You must report the sale and show your calculations on form 8949 and schedule D.  See the detailed answer to you other question you posted.