Expert: John - 8/19/2007

Question
I am in the process of short platting a 15,000 sqft lot that has been my primary residence for 14 years into 2 separate lots. I plan to keep the lot where the house resides and sell the newly platted adjacent lot. Will I be required to pay capital gain taxes on the sale of the adjacent lot? If so, will the basis be on the entire sale price of the lot? Do I subtract half of the cost of the original home to determine the actual gain? Can I apply the $250,000 deduction to the sale of this lot even though there has been no structure there?

Answer
Hi, I found your question in the question pool.

To get correct answers, you will need to talk to a tax advisor.

As for the Revenue Code 121 go to:

www.YorkPAhome.com

click on:

Favorite Links

go down to:

Tax

You should find answers on how it works there.

Good luck,
John