Posted on: 29th Apr, 2010 10:12 am
23 years ago I bought 2.3 acres for 8000 dollars and I am now selling it for 40,000. How much capital gain do i have to pay? Also if I invest this money do I have to pay the capital gain on it?
Hi Guest,
Did you make any improvements to the property? If you did, then it will be added to the purchase price of the property. Then the amount will be subtracted from the sales price of the property. However, you can deduct the costs related to the sale of the property and the depreciation over the 23 years. The rate of capital gains tax would depend on your income tax bracket and the amount of time for which you have owned the property.
Did you make any improvements to the property? If you did, then it will be added to the purchase price of the property. Then the amount will be subtracted from the sales price of the property. However, you can deduct the costs related to the sale of the property and the depreciation over the 23 years. The rate of capital gains tax would depend on your income tax bracket and the amount of time for which you have owned the property.