Home Selling in 97203>Question Details

Pattiann, Home Seller in Portland, OR

I live in the University Park neighborhood and own a 6 bedroom home with a joining build able lot next to it.

Asked by Pattiann, Portland, OR Sat Apr 26, 2008

I'm getting it ready to put on the market and would like to know what would be the best way to sell the lot and home. Together? Or Separate?
I'm a widow, and concerned about the capital gains tax because I'm only able to use the 250,000 tax credit once.

Thank you for your advice!

Help the community by answering this question:


Thank you all for your informative answers!

Just to let you know my home and lot next door are separate. Building on the lot is a great idea, but we are moving to Bend Oregon,(due to a new job & kids need to be in school in the Fall) and we would like to sell the two pieces together so we can buy a new home there. I made a call to my CPA, and we'll see how it works out tax wise!! I would love to sell the two together if I can, but I'll leave it open for all options!

You are all great thanks!
0 votes Thank Flag Link Sun Apr 27, 2008
Do you need to sell right now?
Do you need to sell BOTH if you can split them?
Talk with a CPA about the tax implication, talk with a Realtor about the options, because part of the tax rules relate to in which tax year sales occur.
Good luck!
0 votes Thank Flag Link Sat Apr 26, 2008
Keith Sorem, Real Estate Pro in Glendale, CA
Mindy's answer is spot on...your tax situation can't be fully addressed by a real estate agent. Not knowing what your other income streams are, how much you owe on the property, etc., it's difficult to say.

That said...a few considerations:

To sell the house and lot separately, you will need to go through a lot segregation process with the City of Portland. Not too difficult, but will cost around $750 for the application, and will likely require a survey (~$2,000), then some additional fees to record a new deed and tax lot, assuming it's approved (likely, given the city's predilection for infill development).

It would be easier to sell the property intact, leaving the segregation process, costs, and due diligence with the city to the buyer. But you'd likely make more if that work were already done and the lots were separate. Now, we're back to the tax situation... :)
Web Reference: http://www.repdx.com
0 votes Thank Flag Link Sat Apr 26, 2008
That is an excellent question! I do think you should also get the advice of a tax accountant. They should have time to answer this since tax season is now over. Realtors shouldn't give advice other than selling real estate.
You should ask your realtor to have this property listed twice, one for the entire property and one for just the lot. On both listings, it should state that the two can be sold together or separately. That would require getting a CMA on each property and one for the combined amount. If your tax accountant says it would be more beneficial to sell them together, then you should understand the tax consequences before making the final sale.
0 votes Thank Flag Link Sat Apr 26, 2008
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