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#9
10-27-2005, 08:22 AM
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 Re: Land Sale - quote - > > > > > Selling piece of land that purchased in 1995 for 40,000.
Seems elections must be made on original timely filed> > > > > Closing costs on both ends add up to about 10,000. Sale for > > > > > 120,000. Did nothing to land other than pay property tax > > > > > each year. Can the property tax be included in cost to > > > > > determine the gain? > > > > Not at this point. You COULD have elected each year to > > > > capitalize those costs, but it seems as though you did not. > Assuming he neither elected to capitalize nor deducted the > property tax on Schedule A, can he now file a Form 3115 to > (retroactively) capitalize? returns only, and that wasn't done, so there is no accounting method to change via Form 3115, and the deduction is lost if amended returns are beyond statute. Key word "seems." << ================================================== ===== > << The foregoing is intended for educational purposes only > << and does NOT constitute legal OR professional advice. > << > << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org. > << Copyright (2005) - All rights reserved. > << ================================================== ===== > |
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#8
10-27-2005, 07:25 AM
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| Re: Land Sale - quote - > > > > > Selling piece of land that purchased in 1995 for 40,000.
I don't see how seeing as you're talking about an ELECTION> > > > > Closing costs on both ends add up to about 10,000. Sale for > > > > > 120,000. Did nothing to land other than pay property tax > > > > > each year. Can the property tax be included in cost to > > > > > determine the gain? > > > > Not at this point. You COULD have elected each year to > > > > capitalize those costs, but it seems as though you did not. > Assuming he neither elected to capitalize nor deducted the > property tax on Schedule A, can he now file a Form 3115 to > (retroactively) capitalize? not an accounting method. -- David M. Woods, EA, ChFC, CLU Woods Financial Services Norwood, MA 02062 www.woods-financial.com << ================================================== ===== > << The foregoing is intended for educational purposes only > << and does NOT constitute legal OR professional advice. > << > << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org. > << Copyright (2005) - All rights reserved. > << ================================================== ===== > |
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#7
10-26-2005, 05:34 AM
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| Re: Land Sale - quote - > > > > > Selling piece of land that purchased in 1995 for 40,000.
I don't see how seeing as you're talking about an ELECTION> > > > > Closing costs on both ends add up to about 10,000. Sale for > > > > > 120,000. Did nothing to land other than pay property tax > > > > > each year. Can the property tax be included in cost to > > > > > determine the gain? > > > > Not at this point. You COULD have elected each year to > > > > capitalize those costs, but it seems as though you did not. > Assuming he neither elected to capitalize nor deducted the > property tax on Schedule A, can he now file a Form 3115 to > (retroactively) capitalize? not an accounting method. -- David M. Woods, EA, ChFC, CLU Woods Financial Services Norwood, MA 02062 www.woods-financial.com << ================================================== ===== > << The foregoing is intended for educational purposes only > << and does NOT constitute legal OR professional advice. > << > << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org. > << Copyright (2005) - All rights reserved. > << ================================================== ===== > |
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#6
10-18-2005, 09:34 AM
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| Re: Land Sale - quote - > > > > Selling piece of land that purchased in 1995 for 40,000.
Assuming he neither elected to capitalize nor deducted the> > > > Closing costs on both ends add up to about 10,000. Sale for > > > > 120,000. Did nothing to land other than pay property tax > > > > each year. Can the property tax be included in cost to > > > > determine the gain? > > > Not at this point. You COULD have elected each year to > > > capitalize those costs, but it seems as though you did not. property tax on Schedule A, can he now file a Form 3115 to (retroactively) capitalize? -- Don EA in Upstate NY << ================================================== ===== > << The foregoing is intended for educational purposes only > << and does NOT constitute legal OR professional advice. > << > << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org. > << Copyright (2005) - All rights reserved. > << ================================================== ===== > |
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#5
10-17-2005, 02:18 AM
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| Re: Land Sale A.G. Kalman wrote: - quote - > David Woods, EA, ChFC, CLU wrote:
Now then, here's the kicker. Suppose the land was> > "SMF" <smfwdf[at]comcast.net> wrote: > > > Selling piece of land that purchased in 1995 for 40,000. > > > Closing costs on both ends add up to about 10,000. Sale for > > > 120,000. Did nothing to land other than pay property tax > > > each year. Can the property tax be included in cost to > > > determine the gain? > > Not at this point. You COULD have elected each year to > > capitalize those costs, but it seems as though you did not. > I agree with David's response. A formal election to > capitalize the taxes must have been filed with the IRS per > the regulations for IRC Sec. 266. purchased a long time ago. Given that a positive election should have been made with that first return, or at least the first return subsequent for which it applied, I just wonder if upon audit, the only time it would come up, IRS would demand to see a copy of that election and a copy of the return with which it was filed? I doubt it. Cheer$, Harlan Lunsford, EA n LA << ================================================== ===== > << The foregoing is intended for educational purposes only > << and does NOT constitute legal OR professional advice. > << > << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org. > << Copyright (2005) - All rights reserved. > << ================================================== ===== > |
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#4
10-16-2005, 06:30 AM
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| Re: Land Sale David Woods, EA, ChFC, CLU wrote: - quote - > "SMF" <smfwdf[at]comcast.net> wrote:
I agree with David's response. A formal election to> > Selling piece of land that purchased in 1995 for 40,000. > > Closing costs on both ends add up to about 10,000. Sale for > > 120,000. Did nothing to land other than pay property tax > > each year. Can the property tax be included in cost to > > determine the gain? > Not at this point. You COULD have elected each year to > capitalize those costs, but it seems as though you did not. capitalize the taxes must have been filed with the IRS per the regulations for IRC Sec. 266. -- Alan http://taxtopics.net << ================================================== ===== > << The foregoing is intended for educational purposes only > << and does NOT constitute legal OR professional advice. > << > << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org. > << Copyright (2005) - All rights reserved. > << ================================================== ===== > |
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#3
10-16-2005, 06:30 AM
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| Re: Land Sale "Paul A. Thomas" <paulthomascpapc[at]bellsouth.net> wrote: - quote - > "SMF" <smfwdf[at]comcast.net> wrote
clarify? Other respondents have suggested that you could> > Selling piece of land that purchased in 1995 for 40,000. > > Closing costs on both ends add up to about 10,000. Sale for > > 120,000. Did nothing to land other than pay property tax > > each year. Can the property tax be included in cost to > > determine the gain? > Property tax is deductible on Schedule A each year when > paid. > It does not get added to your cost basis. elect to have capitalized property taxes. I believe that this is wrong and many readers be will be misguided. << ================================================== ===== > << The foregoing is intended for educational purposes only > << and does NOT constitute legal OR professional advice. > << > << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org. > << Copyright (2005) - All rights reserved. > << ================================================== ===== > |
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#2
10-13-2005, 04:59 AM
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| Re: Land Sale "SMF" <smfwdf[at]comcast.net> wrote - quote - > Selling piece of land that purchased in 1995 for 40,000.
Property tax is deductible on Schedule A each year when> Closing costs on both ends add up to about 10,000. Sale for > 120,000. Did nothing to land other than pay property tax > each year. Can the property tax be included in cost to > determine the gain? paid. It does not get added to your cost basis. -- Paul A. Thomas, CPA Athens, Georgia paulthomascpapc[at]bellsouth.net << ================================================== ===== > << The foregoing is intended for educational purposes only > << and does NOT constitute legal OR professional advice. > << > << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org. > << Copyright (2005) - All rights reserved. > << ================================================== ===== > |
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#1
10-13-2005, 04:39 AM
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| Re: Land Sale "SMF" <smfwdf[at]comcast.net> wrote: - quote - > Selling piece of land that purchased in 1995 for 40,000.
Not at this point. You COULD have elected each year to> Closing costs on both ends add up to about 10,000. Sale for > 120,000. Did nothing to land other than pay property tax > each year. Can the property tax be included in cost to > determine the gain? capitalize those costs, but it seems as though you did not. -- David M. Woods, EA, ChFC, CLU Woods Financial Services Norwood, MA 02062 www.woods-financial.com << ================================================== ===== > << The foregoing is intended for educational purposes only > << and does NOT constitute legal OR professional advice. > << > << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org. > << Copyright (2005) - All rights reserved. > << ================================================== ===== > |
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10-13-2005, 04:39 AM
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| Re: Land Sale SMF wrote: - quote - > Selling piece of land that purchased in 1995 for 40,000.
Only if you did not deduct each year's tax on schedule a> Closing costs on both ends add up to about 10,000. Sale for > 120,000. Did nothing to land other than pay property tax > each year. Can the property tax be included in cost to > determine the gain? during the intervening years. ChEAr$, Harlan Lunsford, EA n LA << ================================================== ===== > << The foregoing is intended for educational purposes only > << and does NOT constitute legal OR professional advice. > << > << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org. > << Copyright (2005) - All rights reserved. > << ================================================== ===== > |
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#-1
10-11-2005, 04:35 AM
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| Land Sale Selling piece of land that purchased in 1995 for 40,000. Closing costs on both ends add up to about 10,000. Sale for 120,000. Did nothing to land other than pay property tax each year. Can the property tax be included in cost to determine the gain? << ================================================== ===== > << The foregoing is intended for educational purposes only > << and does NOT constitute legal OR professional advice. > << > << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org. > << Copyright (2005) - All rights reserved. > << ================================================== ===== > |
| Tags |
| land, sale |
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