Taxes, When House and Land Sold at Different Times - Posted by Robert Peterson

Posted by JHyre in Ohio on July 08, 2002 at 07:23:48:

In re cap gain exemption- that’s mushy. If the acreage was not used for business (e.g.- farming), I’d try to take the exemption for all of the sales, but expect an IRS challenge. There is probably case law that covers this situation under the old rules, but I have not investigated it. If possible, try and get the timing of the sales to be the same, even if there are several buyers…that “looks” more like the sale of a residence, than subdivision.

John Hyre

Taxes, When House and Land Sold at Different Times - Posted by Robert Peterson

Posted by Robert Peterson on July 07, 2002 at 18:33:43:

I own 200 rural acres in Missouri. I bought the land unimproved, then later built a home on it. I now live on the land in my own home and plan to sell some of the land separately from the home and also to sell the home with its land parcel. Land values have appreciated about 300% since its purchase 11 years ago. What tax events may be incurred with these transactions? Does the capital gains tax exemption apply to all the land originally purchased when it is sold to differest buyers? Can the two separate sales be structured to take advantage of the capital gain exemption?