bobbyd
May 19, 2006, 05:37 PM
If I own 3 lots and I am selling 2 of them, will I have to pay capital gains taxes on the 2 lots I am selling?
AtlantaTaxExpert
May 22, 2006, 06:56 PM
Yes, capital gains taxes will be due.
Your basis for each lot is one-third what you paid for the three lots (on the assumption that the lots are about the same size).
If they are radically different in size, then you must pro-rate the basis based on the size of the lots.