title>Tax Guru-Ker$tetter Letter Wizard Animation

                 

Tax Guru-Ker$tetter Letter
Sunday, April 15, 2007
 
Vacant Land + Residence


Q:

Subject: Re: Vacant Land Sale Question
 
Kerry, I hate to bother you again, but I successfully sold the lot in January 2006 for 112,000.  My house is on the market, we have since bought a new house.  Do I have to claim the lot sale on my 06 taxes, or can I wait till my house sells and roll it in together?  I want to make sure I get the exemption, but do not want to mis-report.  I really appreciate your advice, you are a kind man.
 
-Regards,

 

A:

The 2006 sale must be reported on your 2006 1040 or else IRS will later discover it as missing and assume the full sales price is taxable income.

How the 2006 sale is reported has a number of potential ways, as I mentioned in my previous email.  This needs to be handled with the services of a tax professional to see which method would be the most appropriate for your unique circumstances. 

Good luck.

Kerry Kerstetter

 


 

 

 



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