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

Posted on: 25th Feb, 2009 02:39 pm
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?
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
Posted on: 25th Feb, 2009 07:24 pm
Could you tell me the % of the tax?
Posted on: 26th Feb, 2009 06:26 am
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.
Posted on: 26th Feb, 2009 09:00 pm
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?
Posted on: 26th Nov, 2011 09:16 am
Is that a yes or no and if we invest the money in a home do we still pay
Posted on: 26th Nov, 2011 09:19 am
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
Posted on: 28th Nov, 2011 09:29 pm
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
Posted on: 12th Dec, 2012 07:40 am
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
Posted on: 12th Dec, 2012 09:48 pm
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