Tax Question Over Improved Land
I purchased property in january or 2004 and then proceeded to put a mobile home on the property. The mobile home has only been on the land for about 6 months. Do I still get to claim long term capitol gain status on the entire sale minus expenses? thanks in advance rich
No, each piece is considered a separate asset. The land would be eligible for capital gain treatment but you would need to own the mobile home for more than 1 yr to get capital gain treatment. You would need to allocate the sales price between the land and the mobile home.
Good points all. Thanks for the solid advice! AC