Main residence for over 2 years is located on a large lot. The lot is split and the vacant portion is sold. Is Cap Gains taxes due on the sale of the vacant lot?
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Confucius say:
He who sits on tack is better off. -
Unless they also sell the residence within, I believe, 2 years after selling the lot it's fully taxable. -
2 years
If the residence is sold within 24 months of the sale of the lot then the lot will fall under Sec 121 along with the house. You are supposed to calculate the gain on the lot and pay the tax on it in the year of the sale. Then, if you sell the house, you can amend the prior year return.I would put a favorite quote in here, but it would get me banned from the board.Comment
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