Tax Guru – Ker$tetter Letter

Helping real people win the tax game.

  • Enter your email address to subscribe to this blog and receive notifications of new posts by email.

    Join 690 other subscribers

  • Blog Stats

    • 327,804 hits

  • Posts By Day

    April 2007
    M T W T F S S
     1
    2345678
    9101112131415
    16171819202122
    23242526272829
    30  

  • Subscribe

  • Special Pages

«
»

Vacant Land + Residence

Posted by taxguru on April 15, 2007

Q:

Subject: Re: Vacant Land Sale Question
 
Kerry, I hate to bother you again, but I successfully sold the lot in January 2006 for 112,000.  My house is on the market, we have since bought a new house.  Do I have to claim the lot sale on my 06 taxes, or can I wait till my house sells and roll it in together?  I want to make sure I get the exemption, but do not want to mis-report.  I really appreciate your advice, you are a kind man.
 
-Regards,

 

A:

The 2006 sale must be reported on your 2006 1040 or else IRS will later discover it as missing and assume the full sales price is taxable income.

How the 2006 sale is reported has a number of potential ways, as I mentioned in my previous email.  This needs to be handled with the services of a tax professional to see which method would be the most appropriate for your unique circumstances. 

Good luck.

Kerry Kerstetter

 

 

 

 

This entry was posted on April 15, 2007 at 11:24 AM and is filed under Uncategorized. You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.

Sorry, the comment form is closed at this time.

«
»