Capital gains tax on vacant land

I am planning to sell a vacant that my father gave to me over 50 years ago. According to the City of Virginia Beach the land is worth a little over $100,000. Do I have to pay capital gain on the amount I sell the property for which is approximately $65,000?

Hi Eugene,

As you're the owner of the property, you'll be liable for paying the capital gains taxes if you receive a profit from the sale of the property.

My father (who is in his late 60's) owned property in Costa Rica. He owned the land and a home on the land. However, the home was demolished 3 yrs ago b/c the home was vacant and looters had set up living quarters there. He sold the land through a POA this past month and told me he wants the money of the sale divided amongst his 3 children. The money is sitting in a bank account in C.R. What is my responsibility in terms of taxes? Is this considered a gift? Do I have to report to IRS and pay state and federal taxes? Does he have to report the income as his, since he technically will not received it? He says he does not want to be involved in anything that has to do with us getting the money. He is a cranky old man and it is hard to communicate w/him. He told me to contact the POA in C.R and I have. There is $39,000 after expenses to be divided. Any input is appreciated. Thank you

Hi IJ,

Your query has been replied to in the given page:
http://www.mortgagefit.com/budgeting-finance/about45534.html#188171

Take a look at it. Hope it helps you.

i have a piece of land that i have over $2,000 in taxes on for several years can I figure this expense into my cost basis as I have never took this expense off a tax return

You should contact a tax adviser and take his opinion in this matter. He will guide you in this regard.

Selling land in Montana- paid 26,000.asking 65,000. we want to take the profits and buy a condo in Florida- will we still pay capital gains on this land .

Hi

My dad passed away i got some land i sold it now i am on disabilty and have been for a few years i make less than 700.00 month do i pay taxes on what i sold the land for.

Hi Bonnie,

If you invest the money in purchasing a real estate, then you may not have to pay capital gains taxes.

To Al,

If you sold off the land for a profit, then you will be liable for paying capital gains tax.

if I sell a land of 1984 [got from father's propety--if he purchased on 1940and divided on
1984] if sell as per valuation---in 38 thousand -how much tax to be paid

Hi nirmal,

Your query has been replied to in the given page:
http://www.mortgagefit.com/budgeting-finance/about48693.html

Take a look at it. Hope it helps you.

Sussane

I bought a home in 2005. I lost the house in a hurricane and paid off the mortgage $177,000 and I did not rebuild and its a vacant lot.

Now its 2011, I am about to sale my vacant lot for $55,000. Do I have to pay any capital gains tax? Technically its a loss on my part.

Welcome solrak,

If you receive a profit by selling off the vacant lot, then you will be liable for paying the capital gains taxes. If you won't earn any profit from it, then you won't have to pay any taxes.

What are the tax consequences as compared to inheriting it at her death?

Hi Pat!

Welcome to forums!

If the parent transfers the property to the child as a gift, then the parent will be liable for paying gift taxes.

Feel free to ask if you've further queries.

Sussane