- posted 12 years ago
My home was purchased together with a separate, adjoining lot, which I
intend to sell. To date , this has been financed together with my the
lot which my home sits, and was purchased at one time from a the same
If I sell the lot, before I sell the house, my undertanding is that it
does not qualify for exemption from capital gains for principle
residence since we are not selling the residence.
in this case is it treated as investment property?
If so, how do I establish its basis? (it was purchased on one deed
with one sales price together with the house.
if i sell the house, and keep the lot for later sale or to develop and
live in, can i step the basis up to reflect the current value when it
becomes characterized as investment property?