Land with house sale tax question

[mtholton]

I’m looking at a property that has a house on it. If I bought it, I’d sell off the house once purchased. I’d carve off 10 acres to go with the house that is part of a larger parcel today.


Has anyone done this before, and have any resources on that type of transaction would be taxed?

 

[Mortenson]

Just an assumption that you'd need an appraisal on the house and then be taxed as a short term cap gain.

 

[Brian662]

You will also want to buy the land and house with separate loans (unless you're a cash buyer) so that you can easily sell the house off. It can complicate sales because the seller has more paperwork to sign, might be sentimental about them staying together, etc.

Again, that all goes out the window if you're buying with cash OR if you bring so much equity to closing you can quit claim deed the house off without the bank being rattled.

I believe the taxes would be short term capital gains (on profits) unless you make it your primary residence for one year.