Posted on: 09th Feb, 2006 08:09 pm
I bought a house of 2 acre for 300$. I divided off 1 acre. So if I sell the land and house I can avoid capital gains. The house is currently worth 500$ and the vacant land is worth 300$. If I can sell the land only, I will have to pay capital gains on it. How do I figure out as to how much I will get taxed on? what is the tax rate of capital gains?
My sister in law sold a parcel of land in Arizona for $15,000.00. She lives in New York and is 70 yaers old. How much capital gains tax does she have to pay? What is deducted from the sale price to determine cost basis for calculating tax? Are closing costs allowed to be deducted from sale price?
Welcome Jim.
The Capital Gain tax implies on (sale price – adjusted basis).
And the adjusted basis= the initial purchase price + maintenance & improvement cost – depreciation cost if there is any.
BTW your sister in law can get exemption on capital gain tax up to $250,000
Hope it is clear. Let me know if you have any further queries.
The Capital Gain tax implies on (sale price – adjusted basis).
And the adjusted basis= the initial purchase price + maintenance & improvement cost – depreciation cost if there is any.
BTW your sister in law can get exemption on capital gain tax up to $250,000
Hope it is clear. Let me know if you have any further queries.
Does the zero tax rate apply to long term capital gains on vacant land in 2008. I have a gain of $160,000.
Hi Dick!
As far as I know, you will have to pay a tax of around 15%. I don't think that the zero tax rate will apply on a vacant land. You can check the following link to find more about it:
http://www.mortgagefit.com/vacant-land.html
Thanks.
As far as I know, you will have to pay a tax of around 15%. I don't think that the zero tax rate will apply on a vacant land. You can check the following link to find more about it:
http://www.mortgagefit.com/vacant-land.html
Thanks.
I bought a lot for $34,000 in 2001. The value was as high as $450,000. I sold in 2008 for $120,000 because I decided not to build. I used the money but intend to buy a home. Can I defer taxes on the land and claim the profit toward a future purchase?
Hello my girlfriend has an acre of land in florida with back taxes due and she cant pay them and she wants to sell me the land for what she paid for it ,whats the best way to transfer and does she have to pay capitol gains on it if i only pay her a little at a time, shes had it several years, any info would be helpful , thanks Rick
To Dara,
I don't think you can defer taxes on the land and claim the profit toward a future purchase. Better consult a tax expert in this regard.
To SlickRick,
If the property is transferred to you then you will be liable to pay the back taxes. To transfer the property in your name, she will have to sign a quitclaim deed. As it's only a transfer, she will not have to pay the capital gains taxes. But before the transfer, she should inform the lender.
I don't think you can defer taxes on the land and claim the profit toward a future purchase. Better consult a tax expert in this regard.
To SlickRick,
If the property is transferred to you then you will be liable to pay the back taxes. To transfer the property in your name, she will have to sign a quitclaim deed. As it's only a transfer, she will not have to pay the capital gains taxes. But before the transfer, she should inform the lender.
We bought 3 1/3 acres 19 yrs ago for 8k. Selling it for 50k, how much capital gains taxes on this. My husband is retired (age 60) and I'm still working (age 56). Our combined income 83k. We plan on using the 50k to build a garage and improving our current home.
Hey Angie,
A question similar to yours has been answered in the given link:
http://www.mortgagefit.com/tax/capitalgains-vacantland.html#77519
Please check it out. I hope it will help you.
A question similar to yours has been answered in the given link:
http://www.mortgagefit.com/tax/capitalgains-vacantland.html#77519
Please check it out. I hope it will help you.
will have 100% cap gains on 9.5 ac in CA if I sell for 75K...also self emp as Avon Lady and get Soc Sec (age 72). But don't make over 15K a year, so do I still have to file taxes + Cap gains? At my age, I can make 30K/year and not file...thanks
Get in touch with a tax adviser and he would be able to guide you in a better way in this matter.
My mother in law inherited land in Lousianna with her sister.Her sister has died and her niece has said the land is now in her name.Does my mother in law have any recourse, since she never signed away her 50% of the land?
Hi Julia,
If your mother's name is mentioned on the property deed, then she will be considered as one of the owners of the property. Thus, the niece will not be able to claim the whole property as her own.
Thanks
If your mother's name is mentioned on the property deed, then she will be considered as one of the owners of the property. Thus, the niece will not be able to claim the whole property as her own.
Thanks
I bought 10 acre 10 years ago for $50,000. built a barn and driveway for $40,000 when I refinanced. I deducted the morgage interest on income taxes. If I sell will I have to pay taxes on profit? what if I use money to buy a primary residence or rental property?
Hi Guinness,
As you're the owner of the property, if you sell it off and receive a profit, you'll have to pay capital gains tax for the same. If the property was used as a primary residence, then you'll be able to lower the tax payments to some extent.
As you're the owner of the property, if you sell it off and receive a profit, you'll have to pay capital gains tax for the same. If the property was used as a primary residence, then you'll be able to lower the tax payments to some extent.