I want to put the money(from both property's) into a new house, Do i have to pay captial gains on the seprate peice i subdivided?
2007-04-04 15:19:12 · 4 answers · asked by bruinsfan72 1 in Business & Finance ➔ Renting & Real Estate
i bought my house with 12.77 acres i subdevided 2.77 acres so i have two lots. The house has a lot with 10 acres. If i sell both together and put the money into another house do i pay taxes on it? The 2.77 acre lot is aproved for a 3 bed house. thanks for your help
2007-04-07 10:37:38 · update #1
It is subdivided only if you have a survey showing it as 2 properties and it is filed in the county courthouse as such...
2007-04-09 10:53:12 · answer #1 · answered by Mark P. 5 · 0⤊ 0⤋
Probably, you dont have to pay tax, providing the two separate lots are still under your name, in city registry. I am assuming that " another house " you intend to buy would be on the future third lot; and not on these two lots you now owned. Am I correct ???? your statement is a bit unclear, but I am assuming this is what you are talking about. Good luck for your another house.
2007-04-11 19:02:06 · answer #2 · answered by frank L L 2 · 0⤊ 0⤋
You might want to provide more information on what you have done with the piece you separated from your residence parcel. If you separated it to turn it into an investment, then capital gains probably applies. Give an addendum to your question.
2007-04-06 04:34:50 · answer #3 · answered by acermill 7 · 0⤊ 0⤋
Section 1031 of the U.S. Internal Revenue Code allows investors to defer capital gains taxes on the exchange of like-kind properties. 1031, or tax-deferred, exchanges hold great advantages for both investors and REALTORS®.
2007-04-12 00:25:56 · answer #4 · answered by robertjrussell.com 2 · 1⤊ 0⤋