Skip to content
×
Pro Members Get
Full Access!
Get off the sidelines and take action in real estate investing with BiggerPockets Pro. Our comprehensive suite of tools and resources minimize mistakes, support informed decisions, and propel you to success.
Advanced networking features
Market and Deal Finder tools
Property analysis calculators
Landlord Command Center
ANNUAL Save 16%
$32.50 /mo
$390 billed annualy
MONTHLY
$39 /mo
billed monthly
7 day free trial. Cancel anytime

Let's keep in touch

Subscribe to our newsletter for timely insights and actionable tips on your real estate journey.

By signing up, you indicate that you agree to the BiggerPockets Terms & Conditions
Followed Discussions Followed Categories Followed People Followed Locations
Tax, SDIRAs & Cost Segregation
All Forum Categories
Followed Discussions
Followed Categories
Followed People
Followed Locations
Market News & Data
General Info
Real Estate Strategies
Landlording & Rental Properties
Real Estate Professionals
Financial, Tax, & Legal
Real Estate Classifieds
Reviews & Feedback

Updated over 4 years ago on . Most recent reply presented by

User Stats

1
Posts
1
Votes
Doug Block
1
Votes |
1
Posts

Sale of Re-platted property - Tax question

Doug Block
Posted

Looking for some advice on how I should treat this situation when I file my taxes this year.

I bought a piece of property a few years ago and replatted it and split it into 2 (not equal amounts). Lot A, the main lot, was larger and has a house on it. Lot B, was smaller and no house. So when we split, the mortgage company re-appraised Lot A and determined it was well above the outstanding loan amount, so they released Lot B from the lien. Essentially meaning, I owned this free and clear.

I then sold Lot B.

So my question is how do I deal with the gain on the sale of Lot B. Is my acquisition price $0? Or do I allocate a certain portion of the original purchase price between Lot A and Lot B? And if so, what should I use as the measurement?

TIA for any feedback or advice.

Loading replies...