$17.95 
Learn more
Submitted By: Amy
Answered: July 27, 2015 11:19 am
Answered: July 27, 2015 11:19 am
Several years ago we bought land and built a vacation home on it. Now we’re selling it. What is our cost basis for purposes of determining gain or loss?
When you sell property, the difference between what you receive and your tax basis in the property produces gain or loss. When selling property, include what you paid for this, such as the land and the cost of constructing the home as well as the initial closing costs (e.g., attorney’s fees, etc.).
advertisement
Featured Books
Tax Glossary
Exemption
A fixed deduction allowed to every taxpayer, except those who may be claimed as a dependent by another person. Extra exemption deductions are allowed for a spouse on a joint return and for each qualifying dependent. A deduction of $3,400 is allowed for each exemption claimed on 2007 returns, but the deduction is phased out for certain high income individuals.
