2007-03-21 13:30:41 · 4 answers · asked by Kathy S 1 in Business & Finance ➔ Taxes ➔ United States
You owe tax on the difference between what you sold the propty for and the basis of the person who gave it to you. Their basis is what they paid for the property, plus any improvements they made to the property.
The difference is long term capital gains, and you will pay at a low rate of tax if that is your only income.
2007-03-21 13:52:25 · answer #1 · answered by irongrama 6 · 0⤊ 1⤋
No way to know from the information provided.
1. When did you receive it?
2. What is the donor's basis for the property?
3. How much Gift Tax did the donor pay?
4. When did the donor acquire the property?
5. What was the fair market value of the property when you received it?
6. How long did you hold the property?
7. What type of property was it?
8. How did you use the property?
All of those questions must be answered first to determine your tax consequences. It could be anwhere from $0.00 to a bit over $10,300.00
2007-03-21 22:09:50 · answer #2 · answered by Bostonian In MO 7 · 1⤊ 0⤋
You must have this reviewed by a tax preparer. There are way too many variables involved, and the tax consequences can be large for you.
2007-03-22 05:20:48 · answer #3 · answered by ninasgramma 7 · 0⤊ 0⤋
You will pay capital gains tax if you held it less than 2 years.
You will fill out the IRS capital Gains Tax form and calculate what you owe based on their formulas.
2007-03-21 20:42:04 · answer #4 · answered by loanquest 3 · 0⤊ 2⤋