Capital Gains On Sold Property: Contact A CPA To Calculate

Added February 20, 2009 by Ilyce R. Glink

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Summary: Sometimes it can be difficult to calculate the taxes owed on sold property, but capital gains is one thing the seller should consider. If you're not sure about how to calculate the taxes on sold property and whether capital gains applies to you, the best thing to do is contact your CPA to calculate the taxes. Capital gains taxes on sold property only applies if you've lived on the property as your primary residence for 2 years.

Q: I have gone through several books including yours and have found nothing that pertains to my situation. We are home owners who got lucky, nine years ago my wife and I bought a house on slightly more than 2 acres and last summer we were able to subdivide and sell 1 acre. We still live in our house on the balance of the property. If I may be so bold as to ask, what do you think our tax implications are? I have asked attorneys/accountants but their answers always sound so tentative. Looking forward to hearing from you.

A: I ran your question by my real estate attorney expert. He says what you're asking is too vague, which is why the answers you're getting from attorneys/accountants may sound tentative to you.

I think you need to sit down with all of the numbers and go through them with your CPA to see what is available to you. My best guess is that you can treat the acre like a long-term capital gain and pay 20 percent tax on your profits. But it's only a guess.

Jan. 1, 2004.

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