To avoid paying capital gains tax on the sale of land, must you own it for two years?
Tag Archives: capital gains tax
Inheritance or Capital Gain?
In 1986 my mother passed away suddenly with no individual will – only my parents’ joint will. This year my father sold all of her land (for $85k) in Louisiana (we live in MS) with the plan of paying the capital gains tax and giving the proceeds to all of us, his children (who would then pay taxes too being over $11k). According to Louisiana law (Napoleanic code?), since there was no will, the proceeds of the sale go to the children – all now in their 40s not the spouse. Each will get about $27k. My question is, in April of ’07, on my ’06 taxes, will this be counted as a tax-free (I think if under $2 million) inheritance or will I need to get a record of its appraised price in ’86 and pay capital gains tax on the proceeds using a cost basis on the price difference from ’86 to ’06?
Posted in Land For Sale
Tagged 40s, Capital, capital gain, capital gains tax, cost basis, father, Gain, inheritance, Land, Louisiana, louisiana law, mother, napoleanic code, parents, plan, price, proceeds, tax, year
Capital gains tax on sale of land?
Hypothetical question. I haved owned a business for a few years and have leased the land. Now I am buying the land but I am selling the business, do I have the hold the land for a certain amount of time before I can resell that to avoid paying a lot in taxes? Is the holding period for land 1 year to qualify for an exemption? Is it advantageous to package both the business and land together in one lump sale?
Posted in Land For Sale
Tagged amount, amount of time, business, Capital, capital gains tax, hold, holding period, Hypothetical, hypothetical question, Land, question, sale, tax, time
Capital Gains from Mutual Funds – Can I apply them to a new home?
I am purchasing my first home and need to sell several of my mutual funds for the down payment. Unfortunately, I am going to take a big hit when I have to pay the capital gains tax from the sale of the mutual funds.
Is there any way that I can apply these capital gains towards the down payment of the new house to decrease my taxes? If not, are there any other suggestions to decrease my capital gains tax?
Frankly, having my mutual funds do well enough to require capital gains tax is not a bad problem to have. It means they have done well over the past few years. I just want to know if I can do anything to improve my tax situation.
Posted in Homes For Sale
Tagged Capital, capital gains tax, down, hit, Home, mutual, mutual funds, payment, sale, tax
Capital Gains Tax on a Land Contract Sale?
I purchased two adjoining pieces of property seperately and pland to sell them seperately. It has been my primary residence for the last three years so I qualify for the 250,000 exemption from my understanding.
I am selling one piece for cash and another on a 15 year land contract at 8.75% interest.
The total capital gain even after all the interest is considered will be under 250,000. Do I have to pay any capital gains taxes?
Posted in Land For Sale
Tagged Capital, capital gains tax, contract, exemption, Land, land contract, pland, Property, RESIDENCE, sale, seperately, tax, understanding