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Ray
Ray, Lawyer
Category: Legal
Satisfied Customers: 38257
Experience:  30 years in civil, probate, real estate, elder law
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If you own your house but owe on your loan, and sell land

Customer Question

if you own your house but owe on your loan, and sell land and put it toward paying off your mortgage is it still taxable
JA: Because real estate law varies from place to place, can you tell me what state this is in?
Customer: s.c.
JA: Has anything been filed or reported?
Customer: no haven't sold it yet
JA: Anything else you want the lawyer to know before I connect you?
Customer: no
Submitted: 4 months ago.
Category: Legal
Expert:  Ray replied 4 months ago.

Hi and welcome to JA. Ray here to help you today.Please bear with me a few moments while I review your question and respond.

Expert:  Ray replied 4 months ago.

You are going to owe capital gains here if you sold land even if you apply it to your homestead.The land here would have gain the difference between what you paid and what it sells for.

Expert:  Ray replied 4 months ago.

Capital gains tables for 2016

016 federal income tax brackets

Tax rate on ordinary incomeSingleTax rate on qualified dividends and long term capital gains

overto

10%$0$9,2750%

15%$9,275$37,6500%

25%$37,650$91,15015%

28%$91,150$190,15015%

33%$190,150$413,35015%

35%$413,350$415,05015%

39.60%$415,050 20%

Married filing jointly /
Qualifying widow or widower

overto

10%$0$18,5500%

15%$18,550$75,3000%

25%$75,300$151,90015%

28%$151,900$231,45015%

33%$231,450$413,35015%

35%$413,350$466,95015%

39.60%$466,950 20%

Expert:  Ray replied 4 months ago.

http://www.schwab.com/public/schwab/nn/articles/Taxes-Whats-New

I appreciate the chance to help you tonight.Please let me know if you have more follow up.