We have questions about extensive adjustments to the cost basis reported on Form 8949
This was undeveloped 130 acre farm property held over a 25 year period. We donated a conservation easement on 128 acres to protect open space and wildlife habitat. On the remaining 2 acres, we developed four off grid buildings as a "camp" and workshop to house maintenance farming and forestry equipment. The sale included all buildings with antique furnishings, vehicles, farm and forestry equipment, etc. On Form 8949, assuming the equipment values must be depreciated, how detailed must Part II column 1a be - there's not enough lines to report - or can we categorize entries such as "conservation easement, roads and foundations, buildings, farm and forestry equipment, vehicles, woodstoves, antique furnishings," etc.? Thank you for your help!
Best Answers
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Hello,
I would recommend you report it on one or two lines of the 8949 for the 130 acres or the 128 acres and 2 acres. Then keep a detailed spread sheet for your records and if the IRS enquires. Part II, Column 1a does not need to be detailed. Only the adjustment is required.
It would make sense to categorize the entries, but is not required.
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Thank you, Matthew!
