Level 3

Question

sale of vacant land

Forum|Forum|5 years ago
February 2, 2021
20 replies
56 views

Client sold vacant land parcel. Wants to defer paying taxes for 2 years and deduct landscaping expenses when sale is reported. How is this done if even possible?

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IRonMaN

Level 15

I don't think your client is going to get what he wants if he wants to defer paying tax on the gain

Slava Ukraini!

Camp1040

Level 10

I have noticed a new type of client who comes to their tax appointment with their own set of rules and regs. Some say I made a mistake since according to their sources unemployment benefits are not taxable!!!

I might have to reduce the invoice amount I charge since the client is helping!😜

Just-Lisa-Now-

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dkh

Level 15

Is there a land contract for this sale?

A

acctjoAuthor

Level 3

no, Its vacant property they owned for years

dkh

Level 15

I meant did they sell this land on land contract? That could've spread the income over several years.

A

acctjoAuthor

Level 3

Thank you! I didn't think so either but client is difficult so checked just to be sure!

IRonMaN

Level 15

Tax season can be challenging ---------------------- even more so when you have to deal with difficult clients.

Slava Ukraini!

T

TaxGuyBill

Is there any chance this vacant land is adjacent to his main home, and he is planning to sell that main home within 2 years? Perhaps that is where this idea is coming from.

If so, he would still pay tax on the gain now, but it may be possible to amend when the main home is sold because the vacant land could fall under the Principal Residence exclusion.

IRonMaN

Level 15

I'm guessing someone at the barbershop mentioned the option of deferring the tax on retirement withdrawals.

Slava Ukraini!

qbteachmt

Level 15

What does this part mean: "and deduct landscaping expenses"

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