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Selling vacant land - taxes = ?

Posted on: 25th Sep, 2009 12:12 pm
I bought a piece of land for $79,000 almost three years ago. My intention was to sell my home (in a different city) and build on the vacant land. Basically, I could not sell my home, so I am selling the land now for $89,000.

However, I did put in $1,900 in the vacant land (making the concrete sidewalk). With the commission to the real estate agent, I would make a very small profit on this land. (If I count how much I paid in property taxes over the three years, I would be making a loss).

Anyhow, my question is this: What is my gain that I owe taxes on and what taxes (capital gains or income)? Do I include the commission, the cost of the sidewalk, and the property taxes I paid in computing the gains?

You will need to pay taxes on $10,000/-

Unless you show it as an investment property, you cannto dedcut the expense you had with real estate agent commission
Posted on: 26th Sep, 2009 10:53 am
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