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J
JOEPCPA
Level 4
September 13, 2022

How to record sale of Air Rights

  • September 13, 2022
  • 2 replies
  • 20 views

If  a client sells air rights above their building, is that a capital gain or ordinary income?

If capital gain, is basis zero?

Thanks, Joe

 

    This topic has been closed for replies.

    2 replies

    T
    Terry53029Intuit Community Champion
    Intuit Community Champion
    September 13, 2022

    I would think it is an asset, and therefore subject to capital gain/loss. As far as basis it would be what he paid for said air rights, Probable zero basis

      J
      JOEPCPAAuthor
      Level 4
      September 13, 2022

      Thanks much

       

        BobKamman
        BobKamman
        Level 15
        September 13, 2022

        On the other hand, most of what he paid for the entire property might be allocated to the air rights.  If you want 27 pages instead of two sentences, check this out:

        chrome-extension://efaidnbmnnnibpcajpcglclefindmkaj/https://scholar.smu.edu/cgi/viewcontent.cgi?article=2329&context=jalc

          J
          JOEPCPAAuthor
          Level 4
          September 21, 2022

          Thank you!

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