MAMalody Posted December 12, 2014 Report Share Posted December 12, 2014 I have not seen this one before. I have some docs from the county and title company indicating a purchase price of $14,750 for a boundary line adjustment.The boundary liine moved 30 feet west. Would this be a basis adjustment or a sale of a portion of a piece of land? Quote Link to comment Share on other sites More sharing options...
Naveen Mohan from New York Posted December 12, 2014 Report Share Posted December 12, 2014 In New York State it would be a sale Quote Link to comment Share on other sites More sharing options...
BulldogTom Posted December 12, 2014 Report Share Posted December 12, 2014 Sounds like an involuntary conversion to me. Tom Newark, CA Quote Link to comment Share on other sites More sharing options...
Lee B Posted December 12, 2014 Report Share Posted December 12, 2014 In the interest of clarity, did your client pay or receive the $ 14,750 ? Quote Link to comment Share on other sites More sharing options...
DANRVAN Posted December 12, 2014 Report Share Posted December 12, 2014 The tax treatment depends on the fact and circumstances. There are various reasons for an adjustment. For example Farmer A might have a couple of acres that are cut off from his farm by a river and adjacent to a field owned by Farmer B. A boundary line adjustment could be used to transfer the land to Farmer B for a price. In that case it would be treated as a sale of land from Farmer A to Farmer B. Quote Link to comment Share on other sites More sharing options...
MAMalody Posted December 12, 2014 Author Report Share Posted December 12, 2014 My client received the 14,750. This is beginning to look more like a sale to me. His last e-mail to me seeking clarification stated: "The lot line adjustment was a mutual boundary line with my neighbor of which I sold him about a fourth of an acre last year under what is called a boundary line adjustment decreasing the size of my property but increasing the size of my neighbor's property. The legal term can also be Boundary Line adjustment." Quote Link to comment Share on other sites More sharing options...
BulldogTom Posted December 12, 2014 Report Share Posted December 12, 2014 I retract my previous comment. Based on what you just posted, it sure looks like a sale. Tom Newark,CA Quote Link to comment Share on other sites More sharing options...
kcjenkins Posted December 16, 2014 Report Share Posted December 16, 2014 My client received the 14,750. This is beginning to look more like a sale to me. His last e-mail to me seeking clarification stated: "The lot line adjustment was a mutual boundary line with my neighbor of which I sold him about a fourth of an acre last year under what is called a boundary line adjustment decreasing the size of my property but increasing the size of my neighbor's property. The legal term can also be Boundary Line adjustment." That is a sale, no matter what they called it. 1 Quote Link to comment Share on other sites More sharing options...
MAMalody Posted December 17, 2014 Author Report Share Posted December 17, 2014 Thanks for the sounding board. I appreciate it. Quote Link to comment Share on other sites More sharing options...
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