If you sell land do you have to report that on your taxes as income?
2007-01-29 06:52:08 · 5 answers · asked by Salem 1 in Business & Finance ➔ Taxes ➔ United States
Raw land is an investment asset the same as stocks. If you have a gain or loss from the sale of land you have held for more than one year you would report it under the long term gain or loss section of schedule D. If you have a gain or loss from the sale of land that you have held for less than one year it is a short term transaction reported on the short term section of schedule D.
Long term gains are taxed at 15% or lower and short term gains are taxed at your regular tax bracket.
2007-01-29 07:02:28 · answer #1 · answered by waggy_33 6 · 0⤊ 0⤋
In contract with what boston stated - also that's mandatory to think about that there will be move taxes due on the sale of the land - often between a million and four% of the promoting cost. The branch of those taxes varies from jurisdiction to jurisdiction, yet are often chop up between customer and dealer.
2016-12-03 04:58:59 · answer #2 · answered by Anonymous · 0⤊ 0⤋
You have to report the gain on the sale. If you owned it for less than 1 year, it's taxed as ordinary income. If you owned it for more than 1 year, it's taxed at the lower capital gains rate.
2007-01-29 06:57:18 · answer #3 · answered by Bostonian In MO 7 · 0⤊ 1⤋
The money from the sale of property must be reported. Consult a tax adviser for the specifics in your case.
2007-01-29 07:00:24 · answer #4 · answered by Shelley 4 · 0⤊ 0⤋
If you made a profit then it is a capital gain. If it is a home your sold that you lived in for more than 2 years and then you re-invest the profit in other real estae then there is no capital gain tax.
2007-01-29 07:00:07 · answer #5 · answered by Steve P 5 · 0⤊ 2⤋