I have a vacant land owned by my company I would like to know if the taxes paid on capital gain are different if they were owned a person. I know that the capital gain tax for a person is 15%.
Does anybody know if it is the same in my situation where the land is owned by a company. Thanks for any help I get !!!
2006-11-16 05:28:06 · 4 answers · asked by Anonymous in Business & Finance ➔ Taxes ➔ Other - Taxes
Its a LLC company
2006-11-16 06:03:03 · update #1
What type of company? C-Corp, S-Corp, Partnership?
A C-Corp does not have reduced capitial gains rates. As income from an S-Corp or Partnership flows through to the owners, the individual owners would receive the reduced rate.
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If it is a single person LLC, all of the income and expenses are reported on the owner's return. As such, the owner would receive the reduced capital gains rate assuming that the land was held over 1 year.
2006-11-16 05:55:50 · answer #1 · answered by Wayne Z 7 · 0⤊ 0⤋
It depends on the company status. If it is a c-corp. then the tax is whatever the corporate tax rate is. Can be up to 35%. If it is an S-corp it should still be 15%.
2006-11-16 06:48:50 · answer #2 · answered by waggy_33 6 · 0⤊ 0⤋
Raw land is treated as inventory. The difference between the price you bought it for and price you will sell it for is called profit, which is subject to capital gains taxes.
Good luck!
2006-11-16 05:34:30 · answer #3 · answered by rmijares 2 · 0⤊ 0⤋
Do NOT listen to rmijares.
listen to the other guy.
2006-11-16 05:58:30 · answer #4 · answered by jinenglish68 5 · 0⤊ 0⤋