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January 24, 2022
Question

I sold vacant land in 2021. I paid $8,200 for it in 2006. I've put $13,275 into it for driveway, well, septic, etc. Does "total amount paid" include this basis?

  • January 24, 2022
  • 1 reply
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Is there somewhere else I should report these expenses, or should I list "total amount paid" as $21,475?

1 reply

January 24, 2022

You should report the total amount paid as the cost basis of your land.

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MaudlynneAuthor
January 24, 2022

Thanks for the speedy response!
So, only the original purchase price: $8,200.  Where do I report the $13,275 in expenses?

January 24, 2022

You add the expenses to the original purchase price and report the total as your cost basis. You do not report the expenses separately.

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