- posted
12 years ago
how does one handle tax on easement
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- posted
12 years ago
An easement is an interest in property. First you have to apportion the basis of the property and determine the basis of the easement - I'd think that would be the hard part. Then to the extent the payment is less than the apportioned value of the easement, it reduces the property's basis. To the extent it exceeds the apportioned basis, it is taxable capital gain.
At least, that's the way it appears to me. ___ Stu
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- posted
12 years ago
I imagine that would be net of the grantor's expenses (e.g. legal) in the matter.
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- posted
12 years ago
What?
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- posted
12 years ago
with hypothetical numbers:
payment for easement $60,000 LESS attorneys fees $2,000 Net payment for easement $58,000 basis $10,000 capital gain $48,000