This is a narrower question than a question about the sale of land adjacent to a PRIMARY residence.
Can I take the $250,000 tax exemption on the sale of my land adjacent to my rental property (not my primary residence in the U.S.) if I am not going to sell the rental property in the near future or in the next two years?
I sold land adjacent to my rental house in 2022. Since the house is a rental, can I take the $250,000 tax exemption on the land sale?
I bought the house in 1991 on two acres. In 2009 I subdivided the property into three lots. The house (rental) is now on one acre and I sold the two adjacent 1/2 acre lots in 2022. The house was my primary residence until 5 years ago. I have lived in the house 2 out of the last 5 years. (The last 3 years it has been a rental.)
I'm not going to sell the house. I'm going to continue renting it. In 6 years I plan to do a 1031 exchange.