Posted on: 24th Sep, 2009 03:35 pm
purchased a vacant land property 6 years ago in hawaii. plan on selling it and using the money for a down payment on a house. will we have to pay capital gains tax? if so, how much? any ways to avoid having to do so?
Probably you will ahve to pay 15% capital gain taxes, since this is a logn term captial gain
I do not think you cna aviod the taxes on it.
Sorry did not completely answer your question before
Sorry did not completely answer your question before
Hi payat,
You will have to pay the capital gains taxes only if you incur a profit by selling that property. If there is no profit, then you won't be liable to pay the capital gains taxes. However, there are certain capital gains tax exemptions as well. You can check it out from the following page:
http://www.mortgagefit.com/know-how/capitalgainstax.html#exemption
You will have to pay the capital gains taxes only if you incur a profit by selling that property. If there is no profit, then you won't be liable to pay the capital gains taxes. However, there are certain capital gains tax exemptions as well. You can check it out from the following page:
http://www.mortgagefit.com/know-how/capitalgainstax.html#exemption
Imissed to mention what adonis said, the taxes need to be paid, only if you have profit