CUBE2U2: "Large acreage caries a lesser value per acre as opposed to selling by the acre. The resale value of $10,000 is just a "guesstimate". There has been a real building boom in the last year in this area and as a result the land has gone up in value. (Just for the sake of math, I just came up with $10,000. Sorry for any confusion.) The land has gone up in value & to what extent time will tell. This is a good thing, but from a tax point of view is there a way to reduce the tax on profit."Ira has already given you a good response.And while there is size discount, I tend to doubt that it is as large or as readily available to you as you think. There are costs to subdividing land and providing infrastructure - roads, water, sewer, and other utilities, that the developer pays and must recover in its lot sale price; you appear to be ignoring these costs altogher.If you were to start selling 1-acre or smaller lots, you will run smack dab into ILSA (The Interstate Land Sales Full Disclosure Act (Title 15, United States Code, Sections 1701-1720)), which is no place to play without either some experience or some very good advisors.See e.g., http://www.hud.gov/offices/hsg/sfh/ils/ilsdevqa.cfm ;http://www.hud.gov/offices/hsg/sfh/ils/ilsstat.cfm ;http://www.hud.gov/offices/hsg/sfh/ils/ilshome.cfm ;http://consumerlawpage.com/brochure/62.shtml ;http://www.usps.com/websites/depart/inspect/real-est.htm ;http://static.highbeam.com/f/floridabarjournal/february011999/theinterstatelandsalesfulldisclosureactstwoyearcom/ ;California - http://www.dre.ca.gov/forms/re614d.pdf .Regards, JAFO
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