How to separate ranch land from personal residence in sale?

Forum|Forum|6 years ago
March 20, 2020
7 replies
24 views

There are a total of 29 acres on two bills from the tax office. One has 18 acres of land and the other has 11 acres and the house. 28 acres have been classified by the tax office as agricultural land. Do I split it as 28 acres for business and then 1 acre and the house as residence as it is used or do I split it as 18 acres for business and the house and 11 acres as personal as it is on the tax bills?

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Best answer by IRonMaN

Then I would allocate the extra acres based on the per acre cost on the bill used on the land only tax bill.

IRonMaN

Level 15

How much is actually used for ranch vs personal use?

Slava Ukraini!

T

tamurackAuthor

Level 3

28 acres were actually used for the ranch.

IRonMaNAnswer

Level 15

Then I would allocate the extra acres based on the per acre cost on the bill used on the land only tax bill.

Slava Ukraini!

BobKamman

Level 15

As IRS would see it, the county classification and $5 would buy you a cup of coffee at Starbucks except they're probably closed. Yes, you should "split it as 28 acres for business and then 1 acre and the house as residence as it is used."

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