I am selling undeveloped land that was given to me by my Father, will I have to pay capital gains taxes?

Answer 1

You will have to pay capital gains taxes if you sell it for more than your father's cost. There are issues with gift taxes, if any, paid by your father at the time of the gift. See pub 551.

Answer 2

CarV is right. The sale will go on Schedule D and depends on how long you held the land if it is long term or short term. Long term is over a year, short term a year or less. Your cost basis is going to be the cost your father had in the land when he gave it to you. That;s what he paid for the land and any improvements he made. (roads, fence, water lines, clearing brush, planting brush, etc ,, things that increased the value of the land)

Answer 3

You will pay a capital gains tax
Try to get involved in a 1031 Exchange so you can defer the tax indefinitely.

Answer 4

Yes, and depending on how long you have held the land, it could be either long-term or short-term gain. If you received it as a gift while your father was/is alive then your cost is what he bought it for. If you received it as a gift on his death, then your cost is what it was worth when he died.

Answer 5

It depends on whether you make a profit on it - if you do, then yes you'll pay capital gains taxes. Since it was a gift, your basis is your father's basis, plus improvements if any.

Answer 6

Big differences in holding period and basis between "given" as in dad was alive at the time versus bequested by dad in his will after he died.

Most the answers above assume dad was alive and you got the land as a gift. If you got it as a bequest through inheritance, I would repost your question.

Answer 7

CAPITAL GAINS taxes AS THE NAME IMPLIES is imposed on the gains realised from a capital assets.unless u ar in the business of real estate where lands will not be considered a capital asset to you then u will need to pay tax on the difference between the value of the land when it was given to u and when u eventually sold it.d tax is based on the assumption that the development of the neighbourhood where d land is situated accounts for the enhanced value of the land and there4 u must pay a tax on the enhanced value.so u will have to pay a tax unles u selll at a loss.visit www.synergyattornies.com.my law firm website

Answer 8

Yes and use his original cost as your basis to compute long term gain for Schedule D. He should have filed a gift tax return Form 709 the year he gave it to you. His cost basis would be on there. If he failed to file it he should have at least told you his cost basis. Value at time of gift means nothing to you - that value would be the value just for filing his 709 not for your gain.