Taxpayer sells his long time home in, say July 2004. In September 2006 he sells a piece of land that was next to the residential home and land that was sold previously. Usually there is a two year window - before or after - that I can tuck sales of contiguous property into. I said - "2 years and 3 months - you lose!" He say: "2004 to 2006 - 2 years!"
I say: "Hmmm... I'll ask MTM!"
I'd love to give it to him - but not if the law says we specifically can't. What say you?
wrote
The IRS will look at the closing dates. He loses. Any gain is taxable income and it does not fall under Section 121.
-- Paul Thomas, CPA snipped-for-privacy@bellsouth.net
First I say that said adjacent land must have properly been part of his homestead in order to qualify. If it was just raw land, then it don't. Secondly, IF it did qualify, then you count the days.
Like I'm counting the days until April 18th.
ChEAr$$, Harlan Lunsford, EA n LA
"Harlan Lunsford" wrote
Are you gonna let your clients walk all over you like that?
I've got 17 individual returns in the pipeline, another dozen or so still to show their face. I've been ahead of the prior years numbers since the beginning of the year. A few of my die-hard extenders actually showed up for their prescheduled appointments - with all their stuff!!!!! - shocker, right? It looks like I'll have less extended returns this year (by only a few).
-- Paul Thomas, CPA snipped-for-privacy@bellsouth.net
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