Welcome back! Ask questions, get answers, and join our large community of tax professionals.
cancel
Showing results for 
Search instead for 
Did you mean: 

sale of vacant land

acctjo
Level 3

Client sold vacant land parcel. Wants to defer paying taxes for 2 years and deduct landscaping expenses when sale is reported. How is this done if even possible?

Labels (1)
0 Cheers
20 Replies 20
IRonMaN
Level 15

I don't think your client is going to get what he wants if he wants to defer paying tax on the gain


Pot Stirrer Gold Medalist - Rio de Janeiro Games
Camp1040
Level 8

I have noticed a new type of client who comes to their tax appointment with their own set of rules and regs. Some say I made a mistake since according to their sources unemployment benefits are not taxable!!!

I might have to reduce the invoice amount I charge since the client is helping!😜

Just-Lisa-Now-
Level 15
Level 15

Just-Lisa-Now-_0-1612290529123.png

 


β™ͺβ™«β€’*Β¨*β€’.ΒΈΒΈβ™₯Lisaβ™₯ΒΈΒΈ.β€’*Β¨*β€’β™«β™ͺ
IRonMaN
Level 15

I'm getting too old and grumpy to deal with those kind of people.  I would refer them somewhere else ----------------- to themselves.


Pot Stirrer Gold Medalist - Rio de Janeiro Games
acctjo
Level 3

Me too! That might have to happen!!

rbynaker
Level 11

I might have to reduce the invoice amount I charge since the client is helping!😜

That brings up a funny story from last week.  I was on skype helping one of my clients file her W-2 on SSA BSO.  She said (jokingly) that since she was doing all the work that I should be paying her for this!  I said, "sure, no problem, I can just bill you out as a subcontractor when I do your bill."

acctjo
Level 3

Too funny!

TAXOH
Level 11
Level 11

πŸ˜‚

TaxGuyBill
Level 15

@Camp1040 wrote:

I might have to reduce the invoice amount I charge since the client is helping!😜


 

I had a friend that hired somebody to repair his furnace.  My friend asked how much was it going to cost.  The repair man told him the price, and said it will be 10% more if you want to watch me, and 30% more if you want to help.

 

abctax55
Level 15

@Camp1040 

Ummm... WRONG.  You are going the wrong way on that there invoicing situation.  Reminds me of the mechanic's labor rate sign: 

If you watch us                   $ 155

If you give us advice           $ 195

If you help/assist us            $  225

If you worked on it before   $  300

(I wanna be a member of the pot stirring club too)
dkh
Level 12

Is there a land contract for this sale?   

acctjo
Level 3

no, Its vacant property they owned for years

dkh
Level 12

I meant did they sell this land on land contract?   That could've spread the income over several years.  

acctjo
Level 3

no it was a cash sale

0 Cheers
acctjo
Level 3

Thank you! I didn't think so either but client is difficult so checked just to be sure!

IRonMaN
Level 15

Tax season can be challenging ---------------------- even more so when you have to deal with difficult clients.


Pot Stirrer Gold Medalist - Rio de Janeiro Games
TaxGuyBill
Level 15

Is there any chance this vacant land is adjacent to his main home, and he is planning to sell that main home within 2 years?  Perhaps that is where this idea is coming from.

If so, he would still pay tax on the gain now, but it may be possible to amend when the main home is sold because the vacant land could fall under the Principal Residence exclusion.

IRonMaN
Level 15

I'm guessing someone at the barbershop mentioned the option of deferring the tax on retirement withdrawals.  


Pot Stirrer Gold Medalist - Rio de Janeiro Games
acctjo
Level 3

No this is not sale of a home, only a vacant lot, 

They are aware of the tax consequences just trying to get out of them 

qbteachmt
Level 15

What does this part mean: "and deduct landscaping expenses"

*******************************
"Level Up" is a gaming function, not a real life function.
0 Cheers