Question

How do i adjust the basis on raw land purchased in 1974 and sold in 2024?

Forum|Forum|1 year ago
March 30, 2025
1 reply
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Basis is usually what you paid to purchase the land, less transaction fees if any.

Why/how do you want to adjust the basis now?

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C

claire28Author

Lsnd purchasefd in 1974 was improved with a barn structure, well and pump, pond. This land was for personal use. It was sold in 2024. Can I suptract the cost of the capital improvements from the sale price. to adjust the basis?

KrisD15

Yes, technically the improvements are added to the basis, then the sale proceeds are subtracted from the adjusted basis, but the result is the same.

As a note, if this land is adjacent to your home, and you sell the land and the parcel with the home within two years of one another, the lot MAY be considered as part of the home and may qualify for the exclusion to capital gains.

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