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Capital gains tax on vacant land

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?
hi, I am considering selling some vacant land i have owned for over 15 years for a good profit. there is some land next to my residence for sale. if i sell the land and buy the other land do i not have to pay capital gains on the profit.
thanks
Posted on: 15th Mar, 2011 04:03 pm
As you will be re-investing the money once you sell off the property, you may be able to offset the capital gains. But, your best option will be to contact a CPA and take his suggestions.
Posted on: 15th Mar, 2011 10:13 pm
My husband purchased a recreational lot in 1972 and is now selling this lot for $159,000. Is there any way to avoid paying CGT?
Posted on: 14th Apr, 2011 03:47 pm
Hi Bonnie!

Welcome to forums!

If you make profit from the sale of the property, then you will be liable for paying capital gains taxes. However, if you flip your existing home for some other home or swap ownership, then you may be able to avoid capital gains taxes.

Feel free to ask if you've further queries.

Sussane
Posted on: 14th Apr, 2011 09:43 pm
we purchased 115 acres +/-,we have owned for 26 yrs. we are closing on the sale of this land,we gave 15,000.00 and now selling it for 132,500.00, we were married at the time of purchase we are now duvorced, she has no taxable income and i had 9,000.00 taxable income in 2010.she is 64,Iam 75. are there any type of exemptions for low income,and what tax bracket may we be in,she is to get half and i get half.thank you.
Posted on: 09th May, 2011 11:10 am
I don't think you will be able to get exemptions for low income.
Posted on: 10th May, 2011 02:26 am
We have 7 acres worth $150,000 that we've owned since 1992. The purchase price was $40,000. We were told that if vacant land was owned over 5 years that capital gains was not due. Is this true? If not what percent will we have to pay? Thank you for your help.
Posted on: 06th Jun, 2011 07:00 pm
Hi Zilpah,

I'm not sure about the 5 year rule. But if you owned the land for more than 1 year, your gain will be subject to more favorable Long Term Capital Gains Tax rates. I will suggest you to contact a tax adviser or a CPA in this regard and take his opinion.

Thanks
Posted on: 06th Jun, 2011 11:01 pm
I bought a parcel of land in the desert in 1990 for $15,000. I made no improvements to the land. The government is interested in purchasing the land for $100,000. How can I avoid/minimize capital gains on the sale? Would purchasing an investment property after the sale be an option?
Posted on: 10th Jul, 2011 11:14 pm
Hi Jeff!

Welcome to forums!

You can go ahead and purchase an investment property after the sale of the land. This might help you in lowering your capital gains taxes. You can also contact a tax adviser and take his opinion in this matter.

Feel free to ask if you've further queries.

Sussane
Posted on: 11th Jul, 2011 09:49 pm
I bought a piece of land in 2009 with the intent to build a house. We have decided not to build. I am still financing it. If I sell will I need to pay capital gains at 15%
Posted on: 16th Aug, 2011 10:48 am
Hi Michael,

If you sell off the land and receive a profit from the sale of the property, then you will be liable for paying the capital gains tax.
Posted on: 16th Aug, 2011 09:37 pm
we were sold 38.9 acres for $1.00 by my fater-in law about 20 yrs ago. we have been renting the land. we pay taxes on the rental income. now we want to
sell the property but what would be the captial gains tax?
Posted on: 18th Sep, 2011 09:27 am
If you gain profit from the sale of the property, then you will be liable for paying the capital gains taxes depending upon the amount of profit you earn from the sale.
Posted on: 19th Sep, 2011 12:57 am
My husband and I bought of piece of property 8 years ago. We are in the 15% tax bracket now and expect to make a profit of $30,000.00. How much capital gains should we plan on paying?
Posted on: 08th Nov, 2011 04:34 am
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