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I sold vacant land in 2021. I paid $8,200 for it in 2006. I've put $13,275 into it for driveway, well, septic, etc. Does "total amount paid" include this basis?

Is there somewhere else I should report these expenses, or should I list "total amount paid" as $21,475?
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4 Replies
MinhT1
Expert Alumni

I sold vacant land in 2021. I paid $8,200 for it in 2006. I've put $13,275 into it for driveway, well, septic, etc. Does "total amount paid" include this basis?

You should report the total amount paid as the cost basis of your land.

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I sold vacant land in 2021. I paid $8,200 for it in 2006. I've put $13,275 into it for driveway, well, septic, etc. Does "total amount paid" include this basis?

Thanks for the speedy response!
So, only the original purchase price: $8,200.  Where do I report the $13,275 in expenses?

MinhT1
Expert Alumni

I sold vacant land in 2021. I paid $8,200 for it in 2006. I've put $13,275 into it for driveway, well, septic, etc. Does "total amount paid" include this basis?

You add the expenses to the original purchase price and report the total as your cost basis. You do not report the expenses separately.

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I sold vacant land in 2021. I paid $8,200 for it in 2006. I've put $13,275 into it for driveway, well, septic, etc. Does "total amount paid" include this basis?

Okay, so I misunderstood your original answer.  Great - thanks a lot!

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