|
Posted by CB on May 21, 2008, 9:30 am
Please log in for more thread options
> Greetings,
>
> We are selling our home of the last 15 years. The overall gain will
> not exceed the $500K cap gains exclusion limit for a couple. We are in
> the process of dividing the property into two tax lots, one with the
> existing house, the other bare land. We have two scenarios for the
> sale of these lots:
>
> 1. Single buyer purchases both lots - I assume (perhaps wrongly) that
> in this case we figure the cap gains as if we'd sold the original
> single lot as a whole. Yes?
>
> 2. Two buyers, each buying one lot - Are we able to avoid cap gains
> tax if we do this?
>
> Please advise and many TIA.
>
> - Casey
>
> ========================================= MODERATOR'S COMMENT:
> If your two sales are within 24 months of each other, you can
> apply the 500,000 exclusion to the total sale of the two contiguous
> properties.
How would one handle the split transaction on one's tax returns if the
two sales were spread over more than one tax year? I mean besides
having to allocate the original basis between the two properties, how
do claim the exclusion? Would you claim it twice or would you have to
not claim it on the first sale and then claim it over both properties
when the second was sold?
TIA.
Casey
--
<< ------------------------------------------------------- >>
<< 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. >>
<< ------------------------------------------------------- >>
| 
Yahoo! 
Google 
Windows Live 
del.icio.us 
digg 
Netscape 
XML Sitemap