Sale of Land & Bldg.

Collapse
X
 
  • Time
  • Show
Clear All
new posts
  • Bird Legs
    Senior Member
    • Jun 2005
    • 990

    #1

    Sale of Land & Bldg.

    Client buys land, Dec. 2004. Client builds an office bldg. on land in April, 2006 for rental purposes.
    Client sales land and bldg. in October, 2006.
    Should know this but my brain is overloaded. How would you report this sale?
    Allocate the sales price between land & bldg. with land LTCG and Bldg. STCG?
    Of course, no depreciation on bldg.
    How would you allocate the sales price between land & bldg.?
    By Costs.
  • HBurkholder
    Member
    • Mar 2006
    • 64

    #2
    I think you are correct to allocate LTCG on land and STCG on building. Has the Real Estate Tax assessors office assessed the property yet? They usually allocate a value to land and to structures. I would use those percentages for my allocation.

    Comment

    • Bird Legs
      Senior Member
      • Jun 2005
      • 990

      #3
      H Burkholter

      Appreciate your response. There would have been no tax appraisal on the building
      as it was completed and sold within the same year, prior to 12-31-06.
      That is why I thought I would use the cost figures to calculate the percentage.
      You are very helpful.

      Comment

      Working...