Have Tax Questions? Ask a Tax Expert for Answers ASAP
Hi! Welcome to Just Answers! Thank you for the opportunity to answer your question! I will do my best to help!
Short of an appraisal, or a separate contract for the land (I have seen that done before) or a clause in the sales contract (I have seen this as well) you need to have some reasonable basis for allocating the sales price to the land. One possible way is to look at your current property tax bill. Often the tax assessor lists the value of the land separately form the value of the improvements. This is one method that I have been successful with on tax returns. There is no such presumption about land vs improvements.
I hope that this has answered your question! If you have any more, please feel free to ask! If you have found this answer helpful, I would appreciate it if you rated me highly!
Thanks again! Have a good night!