Capital gains tax on vacant land

Hi Guest,

You will have to pay capital gains tax depending upon the amount of profit you gain from the sale of the property. You need to contact a tax adviser and he will let you know how much tax you need to pay.

Thanks

I had 28 acres that I sold for $45000 in 2008 which I financed with $2000 down and next payment in 2009 was $2000 on principal and 6% on balance, the same for 2010. In Feb of 2011 buyer paid the balance of $38,800. Being retired and on Social Security with only other small sources of income but up until this year after the land payoff in 2011, I have not been subject to income taxes since retirement and have not had to file. I received the land from my father in 1989 as a gift/inheritance, except my father did not pass away untill 1997. The value of the land at time of taking possession was approximately one half the sale price but I have mixed opinions whether I can count the cost basis even from IRS tax people since it was a gift. The value of the land when my father obtained was probably near $100 an acre. Do I have an expert who actually knows the answer?

Did you incur any profit when you sold off the property? If yes, then you will be liable for paying the capital gains taxes.

We bought a vacant lot in 2001 used it for storage in our business until 2004 sold it in 2005 then bought vacant land that is timber and hay, and put a mobile home on it for main house. What form would I use? tax year 2005

Hi Deanna!

Welcome to forums!

In order to know the right type of form which you need to fill out for this sale and purchase, you should contact a tax professional. He/she will guide you better in this regard.

Feel free to ask if you've further queries.

Sussane

We are thinking of sellling 97 acres of farm land. My husband and I file jointly. What amount of capital gain taxes are we looking to be charged?

Hi Connie,

The capital gains tax will depend upon the amount of profit you receive from the sale of the property.

Thanks,

Jerry

we bought 21 acres for 163,000
subdivided it into 4 lots

(3) 3 acre partials and (1) 13 acres
we plan on selling (2) 3 acre for 200,000 each
how much taxes do we pay

Hi balshemeg,

The capital gains taxes will depend upon the amount of profit you make from the sale of the property. You can contact a tax adviser and he will help you to know the same.

Thanks

My husband and are are looking at buying 52 acres from my mother in law for $1.00. If we sold it in the distant future, for it's full value, would we pay income tax or Capitol gains tax on it? My Abstractors is telling me it's income tax because we bought it for less than face value. My tax account says it's a Capitol gains tax.

Hi Kris!

Welcome to the forums!

You will have to pay capital gains tax only when there is some kind of profit.

Sussane