On Sep 20, 12:36*pm, taxcclueless <rtph...[at]verizon.net> wrote:
- quote -

If you sell both lots reasonably close in time and if you made
personal use of the empty, adjoining lot (extended lawn; natural area
for watching l'il wild critters; parking when you had big house
parties; etc.; etc) then the entire gain could qualify for the primary
residence exclusion.


- quote -

No.

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"taxcclueless" <rtphome[at]verizon.net> wrote in message
news:daa698f4-0d5a-45cf-a8fc-b412cd49486d[at]m73g2000hsh.googlegroups.com...
- quote -

When you bought the property, part of the purchase price is allocable to the
structure and [the other] part to the land. Unless you can show that the
land portion you're keeping is worth more than the portion you're selling,
simply divide the land allocation by the ratio of acreage.

Note: If these were separate lots, with titles legally recorded separately,
there may already be a separate amount identified in property ownership
records as recorded with your county's government. If so, that's your
answer.

--
<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2007) - All rights reserved. > << ------------------------------------------------------- >

My home was purchased together with a separate, adjoining lot, which I
intend to sell. To date , this has been financed together with my the
lot which my home sits, and was purchased at one time from a the same
previous owner.
1
If I sell the lot, before I sell the house, my undertanding is that it
does not qualify for exemption from capital gains for principle
residence since we are not selling the residence.
in this case is it treated as investment property?
If so, how do I establish its basis? (it was purchased on one deed
with one sales price together with the house.
2
if i sell the house, and keep the lot for later sale or to develop and
live in, can i step the basis up to reflect the current value when it
becomes characterized as investment property?

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<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2007) - All rights reserved. > << ------------------------------------------------------- >