How to separate ranch land from personal residence in sale?

[tamurack]

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?

[IRonMaN]

How much is actually used for ranch vs personal use?

[tamurack]

28 acres were actually used for the ranch. 

[IRonMaN · Accepted solution]

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

[qbteachmt]

For this: "28 acres have been classified by the tax office as agricultural land."

In my State, anything 10 acres and over is considered Agricultural. So, your two parcels individually qualify.

You also already described that legally this is Split.

And you didn't tell us What you are working on entering, so that there is some perspective to any other splits.

More details always help.

[tamurack]

They sold the entire property in 2019 and I am trying to separate the sales amount into what is personal residence and what is the sale of the farm business. They did not ever deduct any of the expenses of their personal residence. 

[tamurack]

They had to apply to the tax office years ago to have ten of the acres that were on the legal description with the house to have them qualified for the AG exemption.

[BobKamman]

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."