Taxpayers personal residence burned. Taxpayer then sold lot that personal residence was on. Would this be tax free if all other qualifications are met. or taxable since personal residence has burned and is no longer on this lot. Sale took place within months after fire.
-
-
What about Insurance on the house?This post is for discussion purposes only and should be verified with other sources before actual use.
Many times I post additional info on the post, Click on "message board" for updated content. -
Insurance does not cover the land, (trees yes), but the land does not disapear in a fire. I would say yes, it would be a part of the home exclusion. If you have two lots with your home, both used as one place, if you sell your home and then sell the lot separately within two years, it qualifes for the exclusion.Comment
-
The point I'm making is a gain could be had from insurance proceed thus reducing basis. But you are probably right Exemption applies on sale of land whether profit or loss. (loss not deductible) The post did not mention value of property if in excess of $500,000 of profit..... So question still exists but will probably be below $500,000 ($250,000).Originally posted by Piglee View Post
So, both you & I could be right...don't know...............Last edited by BOB W; 04-05-2011, 11:00 AM.This post is for discussion purposes only and should be verified with other sources before actual use.
Many times I post additional info on the post, Click on "message board" for updated content.Comment
-
15,000
Lot sold for 15,000 and insurance did reimb for home loss.
thank youComment
-
So you are saying that insurance reimbursement and sale of lot did not exceed $500,000 (250,000)?Originally posted by gman View PostLast edited by BOB W; 04-05-2011, 02:48 PM.This post is for discussion purposes only and should be verified with other sources before actual use.
Many times I post additional info on the post, Click on "message board" for updated content.Comment
Comment