info
Google Groups no longer supports new Usenet posts or subscriptions. Historical content remains viewable.
Dismiss
Short term gain or long term gain?
50 views
Skip to first unread message
NadCixelsyd
Oct 9, 2017, 1:08:44 PM10/9/17
to
What happens if there are multiple parts to my basis? For example: suppose I bought some vacant vacation land three years ago. Five months ago I hired someone to build my vacation home. It's finished. After one month, I've decided I don't like it. So I sell it and make a profit. I am not in the business of building houses.
I've owned the land for several years, but the house for only a month.
--
<< ------------------------------------------------------- >>
<< 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 (2011) - All rights reserved. >>
<< ------------------------------------------------------- >>
I've owned the land for several years, but the house for only a month.
--
<< ------------------------------------------------------- >>
<< 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 (2011) - All rights reserved. >>
<< ------------------------------------------------------- >>
lotax
Oct 10, 2017, 6:15:30 PM10/10/17
to
It seems to me that figuring out how to allocate the selling price between the house and the land would be equally important in determining how to tax the gains. Like, the short-term capital gain on zero gain is ... zero.
Has the house had any realistic opportunity to appreciate?
Has the house had any realistic opportunity to appreciate?
Alan
Oct 12, 2017, 12:47:18 AM10/12/17
to
On 10/9/2017 10:05 AM, NadCixelsyd wrote:
> What happens if there are multiple parts to my basis? For example: suppose I bought some vacant vacation land three years ago. Five months ago I hired someone to build my vacation home. It's finished. After one month, I've decided I don't like it. So I sell it and make a profit. I am not in the business of building houses.
>
> I've owned the land for several years, but the house for only a month.
>
Well the easy part is the cost basis of the land and the cost basis of
> What happens if there are multiple parts to my basis? For example: suppose I bought some vacant vacation land three years ago. Five months ago I hired someone to build my vacation home. It's finished. After one month, I've decided I don't like it. So I sell it and make a profit. I am not in the business of building houses.
>
> I've owned the land for several years, but the house for only a month.
>
the improvement. The hard part is the sale proceeds for the land vs the
sale proceeds for the improvement when the contract does not provide it.
You could research the value of a comparable piece of land you could buy
to build a house on. Or, if the county is using market prices in their
tax assessment, you could that relationship o land to building to make
the determination.
0 new messages