Figuring Out Capital Gains On Land Sale
REM #A718
By Ilyce R. Glink
Summary: A reader inherited over 65 acres of land and would like to sell a portion of it. Ilyce explains to him how to figure out the capital gains tax.
Q: In 1990, my father gifted 65 acres of land to me. This year, I had a survey
done and the land was actually just over 65 acres
In 1990, the land was appraised at $334,000. It's worth a lot more today.
I want to sell 30 acres. On Sunday morning, I heard your radio show and you
mentioned to a lady that the capital gains tax was based on your income.
Let's say I get $35,000 per acre and my average income is $35,000 per year.
How or where do I find out how to figure the capital gains tax I would pay?
By the way, I mentioned your show to my son (he's a student at Georgia Tech)
and he knew who you were right off. Good show. Thanks for the help.
Q: If you sell 30 acres at $35,000 per acre, you will likely be paying capital
gains tax at the highest rate -- 15 percent plus your state tax. Your accountant
or tax preparer can run through the numbers for you.
Thanks for listening -- and thanks to your son for listening. He sounds like
he has a good head on his shoulders already.
By the way, my show is podcasted at iTunes or you can listen online at the website
at any time.
NOTE: This column is distributed by Real Estate Matters Syndicate, PO Box 366, Glencoe, Illinois, 60022. This column may not be resold, reprinted, resyndicated or redistributed without written permission from the publisher.
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