My client and her sister a inherited a vacant land valued at $56K. The sold the land for $22,350 and split the proceeds. The sales commission was $3,000 was $111.75. A form 1099-S was given to my client. Will form 8949 and transfered to Schedule D to go with this. Any suggestions on how to approach this.
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It’s not real clear how you present the facts. Perhaps a bit more detail might be helpful. How was the market value determined? Why did it sell so much less than its value? What’s this “was 111.75”?Originally posted by Blackridge View Post
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Yes, the land was valued based on the amount reported on the property tax. The $111.75 was the amount they paid for 2nd installment of tax paid. The land was the site of a house that wad destroyed by fire. My client received insurance payments for the house but decided not rebuild and moved out of town. The house was inherited from her parents after they passed. This happened in 2012 and she could not get an estimate on the value of the land when it was inherited because it a house was instead of vacant land. Based on the information I was provided I used form 8949 to report the sale and it was to Schedule D. Thank you for responding.Comment
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Your insurance payment for the fire must figure into any gain or loss on the land if you are using FMV on DOD, building and land.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
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And, salvage expenses added to land adjusted cost basis.Comment
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