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Level 1
posted Mar 22, 2020 7:29:02 AM

Sale of primary residence in South Carolina and the two adjacent vacant lots. Three different transactions on different days in 2020.

Sale of primary residence in South Carolina and the two adjacent vacant lots.

Three different transactions on different days in 2020 too three different buyers.   I bought the home in 1992, one lot in 1993 and the other lot in 2003 for privacy. I moved and bought my new primary home in Georgia in 2019.  I filed my taxes in both states in 2019.

I believe I don't have too pay any capital gains (filed jointly) because it's less than $500,000.  I tried entering the transactions in the Sale of Home sections in the 2019 TurboTax to give a what if scenario of what might happen when I file in 2020.  TurboTax 2019 let's me input ONLY two entries,  the house and one of the lots, but not the other.

How do I go about entering these transactions without paying any capital gains?

THANKS

0 2 545
2 Replies
Expert Alumni
Mar 22, 2020 7:46:12 AM

Please see answer by NCperson. You sold the land in 2020. You can't include it on your 2019 tax return.

 

[Edited 3/22/2020|1:00PM EST]

Level 15
Mar 22, 2020 8:20:49 AM

@ColeenD3 -  can you please substantiate your advise with documentation?  

 

@hippored3 

In IRS publication 523, it states on the bottom of page 5 of that publication:

 

"Vacant land next to home. You can include the sale of vacant land adjacent to the land on which your home sits as part of a sale of your home if ALL of the following are true.
• You owned and used the vacant land as part of your home.
• The sale of the vacant land and the sale of your home occurred within 2 years of each other.
• Both sales either meet the Eligibility Test or qualify for partial tax benefits, as described earlier.

 

Also, if your sale of vacant land meets all these require-ments, you must treat that sale and the sale of your home as a single transaction for tax purposes, meaning that you may apply the exclusion only once."