I had to sell a portion of my residential property for roadway widening. City sent me a 1099-S but this is only a small portion of the three acres I have owned for 34 years. I have no idea what the value of this small portion was 34 years ago or how to answer the turbotax purchase price. When I purchased the property and house it was all one price. From what I read I don't pay any tax because its only $23,000.00. How do I answer turbotax questions related to value of land 34 years ago?
An easement is not taxable income, it should be subtracted from your basis of the entire property.
Enter the 1099-S and report the value as the same amount of the sale. This should result in no gain, no loss.
Now subtract that amount from the basis of your remaining property.
So, if you purchased for 200,000, subtract the 23,000 and your new basis is 177,000.
Since this is your residential property, the new basis may not even be an issue if/when you sell the remaining property, but if you do need to calculate a capital gain/loss, this would be the new basis.
An easement is not taxable income, it should be subtracted from your basis of the entire property.
Enter the 1099-S and report the value as the same amount of the sale. This should result in no gain, no loss.
Now subtract that amount from the basis of your remaining property.
So, if you purchased for 200,000, subtract the 23,000 and your new basis is 177,000.
Since this is your residential property, the new basis may not even be an issue if/when you sell the remaining property, but if you do need to calculate a capital gain/loss, this would be the new basis.