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Dave1040
New Member

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?

 
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Coleen3
Intuit Alumni

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?

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.

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6 Replies
Coleen3
Intuit Alumni

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?

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
New Member

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?

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
Intuit Alumni

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?

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
Level 15

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?

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
New Member

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?

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
Level 15

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?

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.

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