Im selling a lot that i bought for 15.000 for 50.000.I still owe 8.000 on it.How much will i pay in taxes.?

Answer 1

Basically, you have a $35,000 gain.
The gain is taxed depending on how long you held the property. If you held it for more than a year, you'll generally pay 15% (long term gain). If you held it for less than a year (short term gain) it will be taxed at your personal tax rate which could be as high as 35%. Check with your tax preparer.
The $8,000 loan/mortgage has no bearing on the tax owed on the land. You may have been writing off the interest while you were repaying the loan, but the loan is irrelevant to the gain.

Answer 2

Assuming you have held it more than 12 months you will pay a 15% federal tax on $35,000 of long term capital gain. The $8,000 you owe on it does not impact the tax side. The interest paid on the loan is deductible as investment interest expense on schedule A of your return.
If you live in a state that has a state income tax you will pay that tax on top of the federal tax. You may want to pay the state tax in the same year you sell the land so that you can deduct that also. Watch out for alternative minimum tax.

Answer 3

you'll owe federal income tax on the gain - 35,000. the amount still owed on the property does not matter. The tax rate depends on how long you have owned it - short term or long term capital gain. Between 15 and 25%.

Answer 4

It is quite simple; you take your basis of 15K and subtract it from the 50K selling price for a profit of 35K. If you have selling expenses you subtract them from the 35K. For our purposes here we will say that 35K is the profit from the sale. If you owned the lot longer than one year your 35K in gain is taxed as long term and the rate can be as low as 5%. You have to plug in the numbers to get your tax on it.

Answer 5

Susan S is absolutely correct.

I only have one thing to add: Depending on where you live (and where the property is located), you will owe state income taxes on the gain also.