The Motley Fool Discussion Boards

Previous Page

Financial Planning / Tax Strategies

URL:  http://boards.fool.com/in-other-words-if-i-paid-60000-for-two-lots-16373045.aspx

Subject:  Re: Two Lots Purchased for 1 Price - Basis? Date:  1/1/2002  11:20 AM
Author:  pmarti Number:  56560 of 121095

In other words, if I paid $60,000 for two lots and sold one for $50,000, is there a problem setting the basis for the sold lot at say $45,000

Yes. Your basis allocation must be reasonable. For unimproved property, the standard is division by area. If there are unusual features about one lot, you could probably make some adjustments, but I doubt you could reasonably get to the division you propose.

Phil Marti
Copyright 1996-2014 trademark and the "Fool" logo is a trademark of The Motley Fool, Inc. Contact Us