OT:Capital gain

Coloken · Nov 14, 2011

I am closing out part of my property. No trade or drag it out deals. Six figures. I will be going to a tax expert at tax time, but would like an estimate now. As an estimate, can I assume 15 percent of the gain?.

rodgernbama · Nov 14, 2011

If you've had the property over a year which would make it a long term capital gain,yes the tax would be 15% of the gain.

Mike (WA) · Nov 14, 2011

Yep. If you have virtually no other income, you can get it down to 10%, but thats the only other possibility. I've never looked into what it takes to get the 10% rate.

Anonymous-0 · Nov 14, 2011

Go see a real tax expert now, not some yahoo who shows up January 5 and fills out forms until April 15 when he disappears. You may be able to properly structure that sale and reduce your tax burden.

8N'r--WI · Nov 14, 2011

Not a tax expert, but I believe the CG rate is "up to" 15% as the current maximum.

Your other personal tax info may allow you to pay less than the max.

Tim

rpirkle1 · Nov 14, 2011

My recollection from seeing my parents deal with it is ~15%. Capital Gains calc involves (best I recall) basis (your original cost), improvements cost, improvement depreciation and then sale price.

Also... have this vague recollection that there's a way to defer/reduce the CG tax on it if you buy something functionally equal within a certain period (maybe 2 years) so if you sell 40 acres... and buy 40 somewhere else cheaper there's a way to either defer or avoid the tax man

And yes... at a 6 figure discussion you need to be talking to a tax specialist before the sale.

Spook · Nov 14, 2011

I'd go to see a real CPA or somebody who is a enrolled agent. You need somebody who knows what he is doing. Remember, advice here is worth what you paid for it

Anonymous-0 · Nov 14, 2011

Sounds like a tax on inflation.

dhermesc · Nov 14, 2011

The first question is if its true capital gain or a recapture of previous years depreciation.

If you bought some property for $100,000 and made $200,000 in improvements that have fully depreciated and sold it for $400,000 you would be taxed at your regular rate for $200,000 and capital gain rate for $100,000.

RodinNS · Nov 14, 2011

With all due respect, I think you should see the tax expert now. Avoiding tax is done before hand, not after the deed is done, no pun intended.... If you can work out a plan now with some options going forward you're very likely to come out far ahead on the deal. Someone who specializes in the area of tax law that you're dealing in would be money well spent in my opinion.

Rod

Anonymous-0 · Nov 14, 2011

you go to the Tax expert now to map the path to follow,otherwise you maybe paying needless tax later.Whose pocket is it best in?.

OT:Capital gain

Coloken

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rodgernbama

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Mike (WA)

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Anonymous-0

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8N'r--WI

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rpirkle1

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Spook

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Anonymous-0

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dhermesc

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RodinNS

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Anonymous-0

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