Main home & adjacent Property

[dsobba1]

Based on IRS publication 523 I am eligible to combine my main home and an adjacent piece of property on my tax return. They were separate transactions with separate closing dates, buyers, etc and I will receive 2 different 1099-S forms from the title company. My question is, do I combine the 2 transactions  into 1 line in TT or do I enter 2 separate transactions and refer both as my main home? Just want to ensure I enter all of the information correctly. Thank you in advance!

[ColeenD3]

Yes, you are able to exclude the land sale if you meet the following conditions.

 The sale of land adjacent to your home qualifies for the home sale exclusion if all of the following apply:

• the vacant land is adjacent to land containing your home
• the sale occurs within two years before or two years after the date of the sale of your home
• you owned and used the vacant land as part of your main home, and
• your use of the vacant land satisfies the two-year ownership and use rule.

You can enter both 1099Ss in the Sale of Home section. See the screenshot below.

[dsobba1]

Would I enter both transactions as my main home or only the house sale and not the property? It seems to me that I need to describe both pieces as my primary in order to be looked at together?

[ColeenD3]

By putting the information in the Sale of Home section, you are describing both pieces as your home. Both will be excluded (if qualifications are met). On one of the entries, designate that it is adjacent land.

[dsobba1]

I did not see anywhere you can designate as adjacent land. However, since this was an adjacent piece of property and we used it as part of our main residence I marked both sales as our "main home". Not sure if this will be an issue or not. But nowhere in TT did I see an opportunity to describe the property as "adjacent"

[ColeenD3]

As you can see in my previous screenshot, just write adjacent land next to the address of the house.

[dsobba1]

Thank you for your assistance!