Han and Leia acquired a $1,475,000 lakefront home from Boba Fett Realty (BFR) in 2019. They exchanged their principal residence, townhouse in Coruscant, for the Lake Tatooine property. They paid $700,000 in cash for the townhouse in 2012 and it was recently appraised for $1,400,000. They lived in the townhouse since they purchased it in 2012.

The gorgeous 30-acre lakefront property on Lake Tatooine has incredible views and vistas of the Dune Sea and the Greedo Mountains. In 2019 the Village of Mos Eisley valued the property at $2,150,000 and assessed real property taxes on the both the home and the out-parcels of property. Jobba the Assessor determined that the home represented 30% of the value and the out-parcels represented the remaining 70% of the value for the property.

What are the tax issues involved?