Posted on: 08th Nov, 2009 07:53 am
My Mother inherited some raw land from her Mother. I now have the land. It has been in our family for over 100 yrs.. I have two Uncles that are 1/3 owners. We have been paying taxes on this land as far as I can remember and I am 60. We are selling the land and would like to know what kind of taxes will be due. Capitol gains, etc. thanks
Long term capital gains ... the best you can get.
Hi aw,
You will have to pay long term capital gains taxes, which apply to properties held for more than 1 year. It is taxed at a lower rate as compared to short term capital gains taxes. The tax rate will depend on the value of your property and other factors. However, to calculate the long term capital gains tax, property's cost basis is used rather than the actual purchase price. The cost basis is determined after taking into account factors like real estate taxes, depreciation etc. You need to consult a tax advisor to know how much capital gains tax you will owe IRS for the sale of the land.
You will have to pay long term capital gains taxes, which apply to properties held for more than 1 year. It is taxed at a lower rate as compared to short term capital gains taxes. The tax rate will depend on the value of your property and other factors. However, to calculate the long term capital gains tax, property's cost basis is used rather than the actual purchase price. The cost basis is determined after taking into account factors like real estate taxes, depreciation etc. You need to consult a tax advisor to know how much capital gains tax you will owe IRS for the sale of the land.
do you have to pay long term capital gains if you just transfer the land to your children
Hi sonette!
Welcome to forums!
You should contact a tax adviser and take his opinion in this regard. As far as I know, you may not be liable for capital gains taxes in case of a property transfer.
Feel free to ask if you've further queries.
Sussane
Welcome to forums!
You should contact a tax adviser and take his opinion in this regard. As far as I know, you may not be liable for capital gains taxes in case of a property transfer.
Feel free to ask if you've further queries.
Sussane
Hi and welcome. As others have indicated, your situation may be too unique for you to get an accurate answer at this forum without having to give more information than might be feasible. The problem is that there may be different options for you - different ways to approach this.