Client had a 20 acre piece of land that has been held for many years. She had to sell 15 acres of it last year to pay off debts. Will this land fall under the prinicple residence exclussion? I should point out that the land all came on one peoperty tax bill. The lines where redone for the sale.
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two years after the land
The taxpayer can use Section 121 for the sale of land if the land was used as part of the home and the rest of the home (the building) is also sold within two years before or two years after the land. -
Sale of Vacant Land adjacent to Residence
See TTB page6-20. This is not treated as a sale of residence UNLESS: The vacant land is adjacent to land containing the taxpayer's principal residence,
The taxpayer owned and used the vacant land as part of taxpayer's principal residence,
The sale of the taxpayer's principal residence satisfies the requirements for exclusion and occurs within two years before or two years after the date of the sale of the vacant land, and,
The ownership and use requirements for excluding gain from the sale of the vacant land have been satisfied.Comment
Comment