Posted on: 22nd Oct, 2010 11:42 am
I cashed in my 401K years ago and bought 160 acres in Kentucky for hunting ground. I am now looking at selling this property off for 90,000 more than I purchased it for. Since I used my 401K money which I paid taxes on and penalties for early withdrawal, will this offset any capital gains from the sell of this land? Also, if money from the sell of this property is reinvested into other hunting ground, will this offset any capital gains that would need to be paid for this sell? What kind of tax rate would I be looking at?
Hi Richbuck,
As far as I know, if you sell off the land and gain some profit, you'll be liable for paying capital gains taxes. However, if you use the money to buy a real estate, then you won't have to pay the capital gains taxes.
As far as I know, if you sell off the land and gain some profit, you'll be liable for paying capital gains taxes. However, if you use the money to buy a real estate, then you won't have to pay the capital gains taxes.