In Randolph county Arkansas
2006-08-03 10:31:08 · 4 answers · asked by cluttertoclean 1 in Business & Finance ➔ Taxes ➔ United States
Ask your accountant. If you don't have one then ask your company's accountant. If you don't have a company call H&R block & ask someone.
2006-08-03 10:36:04 · answer #1 · answered by Dubberino 3 · 0⤊ 0⤋
If you sold the land personally, then you will only recognize capital gains to the extent that you receive the payments each year. This is called an installment sale and you report the sale on your tax return and your profit % is calculated. Here is an example:
Sale proceeds: $100,000
Your Cost Basis: $70,000
Your profit margin: 30%
Lets say you are receiving 10 annual payments of $10,000
Payment year 1 - $10,000 X 30% = $3,000 capital gain
And so on and so forth..........
2006-08-03 18:08:12 · answer #2 · answered by 3eleven 4 · 0⤊ 0⤋
I believe that the amount of tax will be the same unless the person that you are selling to has a history of really bad credit. The income from the land will be recognized in the year that the sale was made.
2006-08-03 23:51:25 · answer #3 · answered by Steve 6 · 0⤊ 0⤋
It depends on your state, etc.
Cheapskate.........make an appointment with a professional accountant. Pay the fee. Get the real advice you need for your locale.
2006-08-03 17:39:42 · answer #4 · answered by Anonymous · 0⤊ 0⤋