Oregonian

Here's a question on exclusion of gains on sale of primary residence with a twist. I purchased an older home on 10 acres in a rural about 6 years ago - directly from the seller. The deed included some obscure language that I have since clarified as meaning there are actually three legal lots in the 10 acres. Then I purchased a very small adjacent parcel that had been "lost" in original land sales. I made "lot line adjustments" to create four nice sized lots. I'm hoping to sell the house and some of all of the land soon. So would exclusion of $250,000 gain apply only to the lot with the house, or to gain on selling all lots?