Home arrow Mortgage Forums arrow Budgeting and Personal Finance arrow

How much capital gains tax do I have to pay if I sell vacant land?
Author Message
Bookmark
Bookmark Delicious Add to del.icio.us
Bookmark Yahoo Web Add to YahooMyWeb
Bookmark Simpy Small Add to Simpy
Bookmark Blinklist Add to BlinkList
Icon Mini Profile jkw_21





Joined: 25 Feb 2009

Posts: 1

1.36 Dollars($)
Post Posted: Wed Feb 25, 2009 3:39 pm    Post subject: How much capital gains tax do I have to pay if I sell vacant
Like 0
Dislike 0
I have 80 acres of vacant land that I am thinking about selling for development. How much capital gains tax will I have to pay if I have only owned the land for 1 year & 2 months?
Icon Mini Profile smithsussane
smith.sussane




Joined: 18 Sep 2008

Posts: 10020
Location: Alaska
917.78 Dollars($)
Post Posted: Wed Feb 25, 2009 8:24 pm    Post subject:
Like 0
Dislike 0
Hi jkw!

Welcome to forums!

As far as I know, the capital gains tax is a tax which is charged on the profit realized from the sale of an asset that was purchased at a lower price. I don't think the capital gains tax will depend upon the period of time you owned the property.

You can find a similar discussion on capital gains tax in the following link:
http://www.mortgagefit.com/vacant-land.html

Feel free to ask if you have further queries.

Sussane
Jara

Guest
Post Posted: Thu Feb 26, 2009 7:26 am    Post subject: capital gains tax
Like 0
Dislike 0
Could you tell me the % of the tax?
Icon Mini Profile adonis
adonis




Joined: 22 Oct 2005



Posts: 10242
Location: ALASKA
1042.50 Dollars($)
Post Posted: Thu Feb 26, 2009 10:00 pm    Post subject:
Like 0
Dislike 0
As far as I know, long-term capital gains will apply to assets held for more than one year. These are taxed at a lower rate compared to short-term gains. In the year 2003, this rate was reduced to 15% as well as to 5% for individuals who are in the lowest two income tax brackets. These tax rates would be available till 2010 as a result of the Tax Reconciliation Act. Thus, in 2008, 2009, and 2010, the tax rate on eligible dividends and long term capital gains is 0% for people who are in the 10% and 15% income tax brackets.
_________________
Procrastination is the enemy of your financial success
Rhonda

Guest
Post Posted: Sat Nov 26, 2011 10:16 am    Post subject: Vacant land given to us
Like 0
Dislike 0
We were given 20 acres of land in prime territory about five years ago. It sold for over a million dollars. our share was around $130,000. What taxes do we have to pay? If we turn the money over on a house do we still pay taxes?
Rhonda

Guest
Post Posted: Sat Nov 26, 2011 10:19 am    Post subject: Sold land
Like 0
Dislike 0
Is that a yes or no and if we invest the money in a home do we still pay
Icon Mini Profile smithsussane
smith.sussane




Joined: 18 Sep 2008

Posts: 10020
Location: Alaska
917.78 Dollars($)
Post Posted: Mon Nov 28, 2011 10:29 pm    Post subject:
Like 0
Dislike 0
Hi Rhonda!

Welcome to forums!

You will have to pay the capital gains taxes depending upon the profit you make from the sale of the property. As far as I know, though you invest in a home, you may have to pay the capital gains taxes. Nevertheless, you should contact a tax adviser and take his opinion in this matter.

Feel free to ask if you've further queries.

Sussane
Quick Reply
Your Name
Subject
Image Verification


Can't read the image? click here to refresh
Message body

All times are GMT - 7 Hours
Page 1 of 1