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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: Wed, 02/25/2009 - 19:24 | 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: Thu, 02/26/2009 - 06:26 | 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: Thu, 02/26/2009 - 21:00 | Post subject:

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