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basis cost for capital gains

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rushingmj

Guest
What is the name of your state? pennsylvania
i bought a house and 2 lots next to the house in philadelphia a year ago. In order to finance the lots in the mortgage, I officially paid $1 for the lots and 108,000 for the house. because of the booming real estate market in philly and using an appraiser the realtor knew, I was able to get the house appraised at the inflated level and thereby could finance the lots. now I would like to sell the lots and i am wondering if there is any way I can use a cost basis other than $1. by the way, there are three separate deeds for the three separate properties.
 


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roamer5

Guest
If each lot has its own settlement statement with $1 as the purchase price, then that is your cost basis plus any closing costs.

If there is one settlement statement for the house and two lots then you may be able to use the true cost of the lots as their cost basis. The cost basis of the house would be reduced by those amounts.

In either case above, you may want to contact the IRS to get a ruling for your specific situation.

Generally, the cost basis for property is what you pay for it.
 

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