Sale of Principal Residence and Qualifying Adjacent Lot in Different Tax Years

Please accept that the vacant land sale met the requirements of Regulation 1.121-1(b)(3.) I just need to know the details of how to file my 2016 return. We sold primary residence on 06/11/2015. I reported sale on 2015 return. Total proceeds were $360,000 - well below exclusion of $500,000 for Married filing jointly regardless of basis, etc. Taxes were paid with our 2016 return on some depreciation recapture from a part time rental. On

10/14/2016 we sold a qualifying adjacant vacant lot for $50,000 for a total of $410,000. I tried to talk the title company closing agent out of issuing a 1099S by citing Pub 523 and a signed statement about the sale qualifying for capital gains exclusion but she issued one.

Pub 523 says to treat the two sales as 'one" sale. So how do I do that? Seems like this should happen often enough that the IRS and TurboTax Premier should have a simple way of reporting this. The TT Community's only answer so far is to enter the $50,000 sale as a main residence sale on my 2016 return. I started but what date of sale to use? The lot had its own address given when the subdivision was done. It is on the 1099S and is different from the house. 23 Sunset Dr verus 63 Sunset Dr for the house which was used on the

2015 return. I'm also guessing that TT will ask or know that I reported a sale on our 2015 return and will tell me I can't do it again within two years? If it does ask if I had a capital gains exclusion, do I answer NO because this is "one sale" continued?

I don't think I have to worry about owing taxes on the sale but how do I report the it to cover the 10099S?

Reply to
Ivan Erwin
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