My client invested in land to develop or sell. He is a property investor. Bought in 2008. Turns out there is no easement to get to the land, making it worthless. No offers in the last 3 years since he lost his lawsuit to compel the granting of an easement. He cant legally get to the land. Assuming I want to report this as a total loss, what form would I use? Is this 8949 reporting of vacant land or 4797 reporting a for profit business asset? Thanks!
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As long as he still owns it, nothing has been realized.
There are always helicopters.
Surrounding owners may sell to someone who wants to make a deal.
Why has he waited three years? If he discovered when he lost the lawsuit that he had been defrauded, that might have been a good time to claim a casualty loss.
"Surrounding owners may sell to someone who wants to make a deal."
🙂
Neighboring owners might buy it, or sell theirs to him so he has some contiguous parcel. Or, you can lease it for a cell tower or water tank or electrical substation = it has value. Or, you donate it to a public entity, such as State or County Park, and they can force an access right.
Land is only worthless if it no longer exists, such as slumped into the ocean.
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