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Barbara, Enrolled Agent
Category: Tax
Satisfied Customers: 3827
Experience:  20+ years of experience in tax preparation; 30+ years of experience as a real estate/corporate paralegal.
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I sold my home in Houston recently, which has been a rental

Customer Question

I sold my home in Houston recently, which has been a rental property since 2008. The sale price was essentially the lot value. Within a week of the sale, the buyer had cleared the building and begun construction of two new homes on the land. Should I (or do I have to) allocate the entire sale proceeds to the value of land?
Submitted: 1 year ago.
Category: Tax
Expert:  Barbara replied 1 year ago.

Welcome to Just Answer. My name is ***** ***** I will be happy to assist you.

You will allocate the sale proceeds to the value of the structure (your home) and the land as the entire property existed at the time of sale. It does not matter that the buyer cleared the structure after the sale/closing.

Please let me know if I can assist you further.

Thank you and best regards,