Home Sale Date of Acquisition, Holding Period, Potential Bifurcation

[the oracle]

I purchased a vacant lot in March 2024 for $600,000, and I have hired a general contractor to erect a new construction home, which I anticipate will cost $1,000,000 to erect. I anticipate that the home will be completed in August 2025 with a total cost to construct of $1,600,000. If I were to sell the property in September 2025 for $2,500,000, would I be able to structure the purchase contract to sell the land at a value of $1,500,000 and the home at a value of $1,000,000 in order to qualify the capital gains to be treated as long-term?

[Just-Lisa-Now-]

I think you may be in the wrong place...this forum is for tax professionals using Intuit's professional tax software, it appears you may be looking for DIY help.

Please visit the TurboTax Help site for DIY support, they may be able to help you.

[abctax55]

 "...  I have hired a general contractor..."

I suggest you also hire a tax professional to assist you.

[the oracle]

I landed here after a Google search resulted in a few threads about similar topics on this forum

[abctax55]

Those postings were likely by tax pros, who use Intuit professional tax preparation software.

Are you a tax pro, are you using ProSeries software?  

If not, wander on over to TurboTax.

[the oracle]

I plan on hiring a tax professional, thank you - but it doesn’t hurt to float my potential situation to an expert forum as there might be more than a singular interpretation

[abctax55]

Sure... send me a retainer & I'd be happy to provide tax planning for you.  It's what I do for a living. 

Free tax planning advice is available on Turbo Tax

[the oracle]

I’d like an opinion on whether the scenario I’ve described is potentially compliant with the current/applicable IRS code before I tender a retainer

[IRonMaN]

Tax professionals don’t have merchandise to sell, they only have their time to sell.  I’m guessing you don’t walk into a restaurant and expect a free meal so why do you keep pushing for free advice here?   You have been pointed to a place that can help you so please try going that route.

[abctax55]

Oops...  guess I forgot the /S

I'll decline your 'generous' offer to allow me to give an opinion and then, in good faith, wait for payment.  So NOT my professional business model.

[George4Tacks]

Start here https://www.irs.gov/pub/irs-pdf/p523.pdf

and here https://www.irs.gov/tax-professionals/choosing-a-tax-professional

[qbteachmt]

You seem to be lost on the internet. This is a Software User Forum. It's not Tax Help. Are you using ProSeries to prepare taxes?

You’ve come to a Peer User community for Intuit Income Tax Preparation products supporting tax preparation professionals using ProSeries, Proconnect and Lacerte Tax Preparation programs, and you may be looking for support as an individual taxpayer using TurboTax. Please visit the TurboTax Help site for support.

And try this screen, for the various topics (subforums): https://ttlc.intuit.com/community/discussions/discussion/03/302

Your sign in user info here is the same one you can use over at the TurboTax forum.

Thanks.