Here we go again.
Joan received from her deceases husband a piece of land from her husbands estate on 11/3084 which was valued at $50,244.00. She has held this property and paid all property taxes on it since than.
She sold the land on 10/25/05 for $307,000.00
She paid to have it subdivided - this cost $14,590.00
Paid for a perk test - $475.00
She paid Realtor - $15,000.00
Town of Plymouth property Tax - $94.27
Legal fees - $600.00
Receiving fees of - $75.00
State tax/stamp Deed - $1399.92
She didn't receive the whole $307,000.00 at the close, she held a note for $30,000.00 on it, which the buyer was suppose to have paid in full by 2/21/06, which it hasn't and she gotten a lawyer to file suit, b/c they won't answer her calls. In the note that was signed, the buyer will be charged $500.00 a month until paid, the note is secured by the land and naming Joan as the 2nd Mortgage.
Question do I claim the whole $307,000.00 or subtract the $30,000.00 from this? The 1099-S is reporting the whole amount, plus it has $71.01 in real estate tax reported.
What can I take to make the cost basis higher?
Joan received from her deceases husband a piece of land from her husbands estate on 11/3084 which was valued at $50,244.00. She has held this property and paid all property taxes on it since than.
She sold the land on 10/25/05 for $307,000.00
She paid to have it subdivided - this cost $14,590.00
Paid for a perk test - $475.00
She paid Realtor - $15,000.00
Town of Plymouth property Tax - $94.27
Legal fees - $600.00
Receiving fees of - $75.00
State tax/stamp Deed - $1399.92
She didn't receive the whole $307,000.00 at the close, she held a note for $30,000.00 on it, which the buyer was suppose to have paid in full by 2/21/06, which it hasn't and she gotten a lawyer to file suit, b/c they won't answer her calls. In the note that was signed, the buyer will be charged $500.00 a month until paid, the note is secured by the land and naming Joan as the 2nd Mortgage.
Question do I claim the whole $307,000.00 or subtract the $30,000.00 from this? The 1099-S is reporting the whole amount, plus it has $71.01 in real estate tax reported.
What can I take to make the cost basis higher?
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