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Subject Author Date
Residential exclusion - contiguous property in 2 years tomchand 04-04-2007
Posted by tomchand on April 4, 2007, 2:39 pm
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 Taxpayer sells his long time home in, say July 2004. In
September 2006 he sells a piece of land that was next to the
residential home and land that was sold previously.

Usually there is a two year window - before or after - that
I can tuck sales of contiguous property into. I said - "2
years and 3 months - you lose!"

He say: "2004 to 2006 - 2 years!"

I say: "Hmmm... I'll ask MTM!"

I'd love to give it to him - but not if the law says we
specifically can't.

What say you?

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Posted by Paul Thomas, CPA on April 5, 2007, 2:08 am
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> Taxpayer sells his long time home in, say July 2004. In
> September 2006 he sells a piece of land that was next to the
> residential home and land that was sold previously.
>
> Usually there is a two year window - before or after - that
> I can tuck sales of contiguous property into. I said - "2
> years and 3 months - you lose!"
>
> He say: "2004 to 2006 - 2 years!"
>
> I say: "Hmmm... I'll ask MTM!"
>
> I'd love to give it to him - but not if the law says we
> specifically can't.
>
> What say you?

The IRS will look at the closing dates. He loses. Any gain
is taxable income and it does not fall under Section 121.

--
Paul Thomas, CPA
paulthomascpapc@bellsouth.net

<< ======================================================= >>
<< 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 (2006) - All rights reserved. >>
<< ======================================================= >>

Posted by Harlan Lunsford on April 5, 2007, 2:08 am
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tomchand@gwi.net wrote:

> Taxpayer sells his long time home in, say July 2004. In
> September 2006 he sells a piece of land that was next to the
> residential home and land that was sold previously.
>
> Usually there is a two year window - before or after - that
> I can tuck sales of contiguous property into. I said - "2
> years and 3 months - you lose!"
>
> He say: "2004 to 2006 - 2 years!"
>
> I say: "Hmmm... I'll ask MTM!"
>
> I'd love to give it to him - but not if the law says we
> specifically can't.
>
> What say you?

First I say that said adjacent land must have properly been
part of his homestead in order to qualify. If it was just
raw land, then it don't.

Secondly, IF it did qualify, then you count the days.

Like I'm counting the days until April 18th.

ChEAr$$,
Harlan Lunsford, EA n LA

<< ======================================================= >>
<< 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 (2006) - All rights reserved. >>
<< ======================================================= >>

Posted by Paul Thomas, CPA on April 9, 2007, 3:29 am
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> Like I'm counting the days until April 18th.

Are you gonna let your clients walk all over you like that?

I've got 17 individual returns in the pipeline, another
dozen or so still to show their face.

I've been ahead of the prior years numbers since the
beginning of the year. A few of my die-hard extenders
actually showed up for their prescheduled appointments -
with all their stuff!!!!! - shocker, right?

It looks like I'll have less extended returns this year (by
only a few).

--
Paul Thomas, CPA
paulthomascpapc@bellsouth.net

<< ======================================================= >>
<< 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 (2006) - All rights reserved. >>
<< ======================================================= >>

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