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bagel9
New Member

I sold a vacant lot this year but I had a home torn down on this land in 2013 to turn it into a vacant lot. How do i report this?

In 2012, I paid off a lien on my brother's home and title was transferred to me.  I had the home demolished due to uninhabitability (too many repairs) in 2013, wherein I incurred additional expenses going forward.  I sold the vacant lot this year below assessed value.  Property in is the same state I live in.

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HelenaC
New Member

I sold a vacant lot this year but I had a home torn down on this land in 2013 to turn it into a vacant lot. How do i report this?

 Certain events that occur during the period of your ownership may increase or decrease your basis, resulting in an "adjusted basis." Add all the costs/expenses since 2012 that you incurred to come up with your adjusted basis. For example, increase your basis by items such as the cost of improvements (tear down) that add to the value of the property. 

To report the sale, see Where do I enter the sale of a second home, an inherited home, or land?

Real property, also called real estate, is land and generally anything built on or attached to it. If you buy real property, certain fees and other expenses become part of your cost basis in the property.

Your basis includes the settlement fees and closing costs for buying or acquiring the property. You can't include in your basis the fees and costs for getting a loan on property. A fee for buying property is a cost that must be paid even if you bought the property for cash.

The following items are some of the settlement fees or closing costs you can include in the basis of your property.

  • Abstract fees (abstract of title fees).

  • Charges for installing utility services.

  • Legal fees (including title search and preparation of the sales contract and deed).

  • Recording fees.

  • Surveys.

  • Transfer taxes.

  • Owner's title insurance.

  • Any amounts the seller owes that you agree to pay, such as back taxes or interest, recording or mortgage fees, charges for improvements or repairs, and sales commissions.





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3 Replies
HelenaC
New Member

I sold a vacant lot this year but I had a home torn down on this land in 2013 to turn it into a vacant lot. How do i report this?

 Certain events that occur during the period of your ownership may increase or decrease your basis, resulting in an "adjusted basis." Add all the costs/expenses since 2012 that you incurred to come up with your adjusted basis. For example, increase your basis by items such as the cost of improvements (tear down) that add to the value of the property. 

To report the sale, see Where do I enter the sale of a second home, an inherited home, or land?

Real property, also called real estate, is land and generally anything built on or attached to it. If you buy real property, certain fees and other expenses become part of your cost basis in the property.

Your basis includes the settlement fees and closing costs for buying or acquiring the property. You can't include in your basis the fees and costs for getting a loan on property. A fee for buying property is a cost that must be paid even if you bought the property for cash.

The following items are some of the settlement fees or closing costs you can include in the basis of your property.

  • Abstract fees (abstract of title fees).

  • Charges for installing utility services.

  • Legal fees (including title search and preparation of the sales contract and deed).

  • Recording fees.

  • Surveys.

  • Transfer taxes.

  • Owner's title insurance.

  • Any amounts the seller owes that you agree to pay, such as back taxes or interest, recording or mortgage fees, charges for improvements or repairs, and sales commissions.





View solution in original post

bagel9
New Member

I sold a vacant lot this year but I had a home torn down on this land in 2013 to turn it into a vacant lot. How do i report this?

Thank you!  I sailed right through my expenses & Turbo Tax prompts with your help.
HelenaC
New Member

I sold a vacant lot this year but I had a home torn down on this land in 2013 to turn it into a vacant lot. How do i report this?

Excellent! You're very welcome and thank you for using TurboTax. Have a great 2019!
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