Level 2

Question

Home Sale Date of Acquisition, Holding Period, Potential Bifurcation

11 replies
42 views

I purchased a vacant lot in March 2024 for $600,000, and I have hired a general contractor to erect a new construction home, which I anticipate will cost $1,000,000 to erect. I anticipate that the home will be completed in August 2025 with a total cost to construct of $1,600,000. If I were to sell the property in September 2025 for $2,500,000, would I be able to structure the purchase contract to sell the land at a value of $1,500,000 and the home at a value of $1,000,000 in order to qualify the capital gains to be treated as long-term?

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Just-Lisa-Now-

Intuit Community Champion

I think you may be in the wrong place...this forum is for tax professionals using Intuit's professional tax software, it appears you may be looking for DIY help.

Please visit the TurboTax Help site for DIY support, they may be able to help you.

♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪

T

the oracleAuthor

Level 2

I landed here after a Google search resulted in a few threads about similar topics on this forum

abctax55

Level 15

Those postings were likely by tax pros, who use Intuit professional tax preparation software.

Are you a tax pro, are you using ProSeries software?

If not, wander on over to TurboTax.

HumanKind... Be Both

abctax55

Level 15

"... I have hired a general contractor..."

I suggest you also hire a tax professional to assist you.

HumanKind... Be Both

T

the oracleAuthor

Level 2

I plan on hiring a tax professional, thank you - but it doesn’t hurt to float my potential situation to an expert forum as there might be more than a singular interpretation

abctax55

Level 15

Sure... send me a retainer & I'd be happy to provide tax planning for you. It's what I do for a living.

Free tax planning advice is available on Turbo Tax

HumanKind... Be Both

qbteachmt

Level 15

You seem to be lost on the internet. This is a Software User Forum. It's not Tax Help. Are you using ProSeries to prepare taxes?

You’ve come to a Peer User community for Intuit Income Tax Preparation products supporting tax preparation professionals using ProSeries, Proconnect and Lacerte Tax Preparation programs, and you may be looking for support as an individual taxpayer using TurboTax. Please visit the TurboTax Help site for support.

And try this screen, for the various topics (subforums): https://ttlc.intuit.com/community/discussions/discussion/03/302

Your sign in user info here is the same one you can use over at the TurboTax forum.

Thanks.

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