Taxpayer bought personal residence for $250,000 plus costs, and took long-time homeowner credit. Property was 2 lots, one with house, one without. Basis after credit reduction is $246,162.
9 months later they sold the house and the house lot, (but kept the vacant lot,) for $223,000. I'd guess the lot was worth somewhere between 20-25K FMV. Plus or minus.How to I figure if they have to give back the credit? If I show ONE DOLLAR LOSS - do I get to keep the whole credit?
Should I get an appraisal of lot kept's value as of the date of sale?