Allocating tax basis...

“If I buy more than one new property, how do I allocate my tax basis between them?”

Since your tax basis rolls over from the old property to the new, you would allocate your basis between multiple properties on a pro-rata basis.

For example, if you sell your Old Property for $100,00, which has a basis of $50,000, and you buy two new properties; one for $60,000 and one for $40,000; your $50,000 basis would transfer pro-rata. This means that the basis of the $60,000 property will be $30,000 and the basis of the $40,000 property will be $20,000.

--The Experts