I bought 5 acres in a deed restricted subdivision in the Houston area 3 years ago. I paid $55,000 for the lot at that time. I am contemplating selling that property now and I have seen similar lots sell for $150,000. I am trying to find out what I could expect to pay in taxes on the gain I make from the sale to see if it is worth selling or not. I have made no imporvements to the property since I purchased it.
2007-06-19 14:23:50 · 3 answers · asked by Keith A 1 in Business & Finance ➔ Taxes ➔ United States
The gain will be taxed as a long-term capital gain. The rate is 15% for most taxpayers. Using your numbers, the gain would be $95,000 and the tax would be $14,250.
As there's no income tax in TX, you won't pay any state tax.
2007-06-19 14:31:21 · answer #1 · answered by Bostonian In MO 7 · 0⤊ 0⤋
Your net profit on the sale will be sale price less purchase price, less any selling expenses and carrying costs. This will be a long-term capital gain. The federal income tax on this would be 15% of the net gain. The state and local taxes would depend on those rates. In Georgia, the tax would be 6% of the gain.
2007-06-19 14:31:40 · answer #2 · answered by michael h 2 · 0⤊ 0⤋
No, it makes more sense for businesses to track purchases. Here's the thing, though. If you had a hot dog stand that teleported randomly from state to state, it would be a giant hassle to keep track of what you sold in which state. If you're selling widgets on the Internet, all that information is in the form the customer fills out. Which means that software can record, calculate, and even pay the appropriate proportion to the correct states, without any real additional hassle at all.
2016-05-20 02:08:20 · answer #3 · answered by Anonymous · 0⤊ 0⤋