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We sold part of our farm in 2017. How's. How do we find the…

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We sold part of...

We sold part of our farm in 2017. How's

Accountant's Assistant: The Accountant will know how to help. Please tell me more, so we can help you best.

How do we find the basis?

Accountant's Assistant: Is there anything else important you think the Accountant should know?

A Few Years Ago We Sold 7 acres Of The Same Farm. Wil! that Sale be our new basis?

Submitted: 1 month ago.Category: Tax
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Answered in 17 minutes by:
3/26/2018
Tax Professional: Lev, Tax Advisor replied 1 month ago
Lev
Lev, Tax Advisor
Category: Tax
Satisfied Customers: 32,736
Experience: Taxes, Immigration, Labor Relations
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You will report the sale transaction on form 4797

https://www.irs.gov/pub/irs-pdf/f4797.pdf

We need to have a list of assets you are selling.

You will separately list each asset - for instance - land, buildings, farm equipment.

You will need to have a separate basis for each item.

So if you did not account for these assets separately - you will need to apportion your total basis.

Your basis will be your original purchase price - assuming the farm was purchased.

Let me know if the farm was gifted or inherited?

Then - it will be adjusted by improvement expenses (+) depreciation (-) selling expenses (+) ,and some other items.

Let me know if you need help with determination.

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Tax Professional: Lev, Tax Advisor replied 29 days ago

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