Posted on: 11th Sep, 2010 06:26 pm
I have sold some vacant umimproved land. The buyer is paying off the purchase price plus interest over a 2 year period. Do I pay capital gains tax for the full amount the first year or do I pay taxes over the 2 year period?
Welcome jftheisen,
You will have to pay the capital gains taxes on the amount of profit you make from the sale of the property. As the buyer is paying the interest over a 2 year period, this can be considered as your profit and you might have to pay taxes on it.
You will have to pay the capital gains taxes on the amount of profit you make from the sale of the property. As the buyer is paying the interest over a 2 year period, this can be considered as your profit and you might have to pay taxes on it.