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Selling Vacant Land |
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If I have land in Florida and sell it, what tax issues do I need to worry about? The land has no buildings on it and was transferred to us through a quick claim deed. We might sell it for more than the tax assesors say it is worth and I want to make sure I know how to handle the taxes on the sell of the land. |
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You will owe federal capital gains tax at no more than 25%, also state tax, which would be less, on your actual profit. Your cost basis is what you paid for it, or the value when you inherited it--or if you received it as a gift, the cost basis of the person who gave it to you. That is subtracted from your sale price, you also subtract the legal costs of selling and any real estate commissions, and the remainder is your taxable capital gain. Better consult a CPA if there's much money involved, because there may be other ways to save some taxes on the deal. |
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Edith
Originally published on February 13, 2008 |
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