Differentiating Sales Prices for Selling Multiple Properties Simultaneously

Forum|Forum|2 years ago
October 11, 2023
1 reply
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Related to my previous post on selling mulitple tracts of vacant land, and maybe this is an accountant question but...

The title company plans on issuing only one Deed for the sale and transfer of mulitple pieces of land to the same buyer under one contract for a set total price for all tracts. For taxes (cost basis adjustments), it seems I would need some documentation from the sale, indicating the cost of each tract, since each one came to us for a different price or as a gift.

Can someone confirm whether this is necessary and how I would generate such a document if the neither the title company or the buyer are requiring it?

Thanks!

Anonymous_

Level 15

That's a bit odd. Do the tracts have the same parcel number (PIN)? I have to presume, perhaps, that the county assessor (or relevant authority) will have no problem with that procedure provided the transfer tax is paid.

Regardless, the title company will likely have no way of knowing your basis in each tract. As a result, you will need an appraisal (or market analysis) at the time each tract was gifted. If gift tax returns were filed, the basis for each tract would appear on those returns.

LonestarAuthor

Level 5

Each has a different APN. The title company agent says he never (well, maybe once out of a hundred) prepares individual deeds for multi-tract sales, so I have to assume there's no issue with that. No doubt transfer taxes will be paid.

Anonymous_

Level 15

Understood, @Lonestar

You probably still need to allocate the sales price and basis for each parcel since each has a different basis (although you could probably lump them together if you knew the basis for each parcel since they probably have all been held long-term).