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How much capital gains tax do I have to pay if I sell vacant land?

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?

smith.sussane's picture
smith.sussane | Joined: September 18, 2008 09:57 pm | Posts: 0 | Location: New Jersey | 00 Dollars($)

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

Like | Dislike | Share | Posted: Fri, 02/05/2016 - 01:30 | Post subject:

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Could you tell me the % of the tax?

Like | Dislike | Share | Posted: Fri, 02/05/2016 - 01:30 | Post subject:

adonis's picture
adonis | Joined: October 22, 2005 05:04 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

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.

Like | Dislike | Share | Posted: Fri, 02/05/2016 - 01:30 | Post subject:

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

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?

Like | Dislike | Share | Posted: Fri, 02/05/2016 - 01:30 | Post subject:

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

Is that a yes or no and if we invest the money in a home do we still pay

Like | Dislike | Share | Posted: Fri, 02/05/2016 - 01:30 | Post subject:

smith.sussane's picture
smith.sussane | Joined: September 18, 2008 09:57 pm | Posts: 0 | Location: New Jersey | 00 Dollars($)

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

Like | Dislike | Share | Posted: Fri, 02/05/2016 - 01:30 | Post subject:

Anonymous's picture
Anonymous | Joined: June 8, 2004 01:06 am | Posts: 0 | Location: New Jersey | 00 Dollars($)

i purchased 30 acres of land in 1998 for 195,000.0 ,60% of the 30acres is all flood and wetlands not suitable for building a home on , i.m selling 3 acres zoned e2 for 64000.0 .can i show a higher purchase price on this lot to reduce my capital gains this year , my personal income is 75,000.0 in 2012 , very sincerely jim

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smith.sussane's picture
smith.sussane | Joined: September 18, 2008 09:57 pm | Posts: 0 | Location: New Jersey | 00 Dollars($)

Hi jim francis!

Welcome to forums!

I don't think it will be legal to quote a higher purchase price in order to avoid or reduce capital gains taxes. You may be in trouble if you do so.

Feel free to ask if you've further queries.

Sussane

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