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Author: pnt Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 121333  
Subject: capital gain Date: 3/6/1999 6:59 PM
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A piece of property was divided into 2 separate lots.Upon each one I built an apt. building.How do I determine the value of each lot?
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Author: TMFTaxes Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 11877 of 121333
Subject: Re: capital gain Date: 3/10/1999 5:38 PM
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[[ A piece of property was divided into 2 separate lots.Upon each one I built an
apt. building.How do I determine the value of each lot?]]

The "value" has nothing to do with it. You'll take your original purchase price (plus improvements) on the original lot, and divide that cost between the two new lots using a reasonable method (by square footage or something similar).

The "value" of either the old or new lots has no meaning. You are stuck with the COST of the lot.

TMF Taxes
Roy

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