I live in Virginia but own land in Arizona that I would like to sell. I plan to use the sale of the land to pay off the existing mortgage on my primary residence in Virginia. Will I still pay capital gains? I have owned the land for three years and it has appreciated quite a bit. Thanks.
2007-02-27 08:09:58 · 4 answers · asked by spelldine43 2 in Business & Finance ➔ Taxes ➔ United States
Yes.
You will pay capital gains tax on the profit for federal along with Arizonza and Virginia income tax. Virginia should give you a credit for the Arizona taxes though.
2007-02-27 08:57:51 · answer #1 · answered by Wayne Z 7 · 0⤊ 0⤋
Unless you've lived on the property for the last two years prior to selling it, then yes, you will owe capital gains tax.
2007-02-27 08:29:39 · answer #2 · answered by Katasha 3 · 0⤊ 0⤋
often to declare exclusion from capital earnings you should apply the valuables as your familiar place of residing. in case you sell the valuables which you have owned and used for atleast 2 years than you may exclude earnings of upto $250K ($500K if married submitting collectively). the abode sale exclusion additionally consists of earnings from the sale of vacant land if it extremely is adjoining and has been used as part of the critical place of residing, if the land sale happens interior 2 years till now or after the sale of the residing unit. The land must be adjoining to land containing the residing unit, and all standards of section 121 must be happy.
2016-11-26 19:20:26 · answer #3 · answered by ? 4 · 0⤊ 0⤋
Yes, you will owe capital gains.
2007-02-27 08:22:58 · answer #4 · answered by CarVolunteer 6 · 0⤊ 0⤋