In 05, my husband and brother bought a piece of raw land in hopes that it would gain value and be sold at a later date for a profit. Since then, my husband has passed away, and I need to take out the money invested. They paid $100,000 the land, but the latest tax assessment listed it as $56,000. My brother is willing to buy me out. So it looks like I will take a loss. Every year we have to pay HOA dues for the neighborhood, mowing, water, taxes, etc. and I can't afford the fees. Can I take the loss in selling price as a tax loss? Thank you.
Sorry to ask a stupid question – what is HOA? (obviously not Heads of agreement).
As to the price of the land, the taxable value generally does not reflect the market value of the block – appoint a valuer to provide a valuation of the block for sale purposes. That way you will have a price that reflects market not the value for rates.
Since you have inherited the land it is likely your cost base will be the value at the date of death. Best to get some proper tax advice before selling as you may be unlikely to get the loss
Terryw | Structuring Lawyers Pty Ltd / Loan Structuring Pty Ltd
http://www.Structuring.com.au
Email MeLawyer, Mortgage Broker and Tax Advisor (Sydney based but advising Aust wide) http://www.Structuring.com.au
i think HOA would be home owners association. if this is so the original poster is probably innorth america and should bear in mind that the other posters are commentingfrom an australian perspective
Thanks for the responses. You're right. I'm in the U.S. and didn't realize this was an Australian board. Thank you for letting me know!
Creonline.com is an American site that might have a forum that could help you
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