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Sandi Hargrove, SkyHawks
Sandi Hargrove, SkyHawks, Master Tax Advisor, Enrolled Agent
Category: Tax
Satisfied Customers: 1257
Experience:  I am a Master Tax Advisor and Enrolled Agent. I have 40 years experience. Trucking specialist.
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I have heard that senior citizens over the age of 59 and a

Resolved Question:

I have heard that senior citizens over the age of 59 and a half, can sell property and not use the money for another home or property, and not have to pay capital gains taxes. But it can only be done one time
Submitted: 8 years ago.
Category: Tax
Expert:  Sandi Hargrove, SkyHawks replied 8 years ago.
You are referring to an old rule. That rule has been replaced.

The current rule is that a person of any age may be eligible to exclude up to 250000 of capital gain for the sale of their primary residence IF they owned and lived in the home as their primary residence for at least 24 months during the 60 month period ending on the date of the sale. Persons who do not qualify for the full exclusion amount may be eligible for a partial exclusion amount if the move is job related, health related or due to certain specific undue circumstances.

The new rule can be used every 2 years.
Sandi Hargrove, SkyHawks and 2 other Tax Specialists are ready to help you
Customer: replied 8 years ago.
the property in question is vacant land and not a residence. what is the rule on it
Expert:  Sandi Hargrove, SkyHawks replied 8 years ago.
Unfortunately vacant land is not excludable. The sales price minus your original cost (if purchased), minus expenses of the sale, minus any capital improvements to the land during your ownership is your capital gain.

The long term (owned more than 1 year or inherited) capital tax rate is 0% if you held the land for investment purposes and your regular tax rate is under 25%. The rate increases to 15% if you are in the 25% or higher bracket.

The short term (owned 1 year or less) capital gains tax rate is the same as your regular tax rate.

Schedule D will help you thru the process if you have all of the needed information.

If you acquired the land by inheritance or gift, please let me know.
Sandi Hargrove, SkyHawks and 2 other Tax Specialists are ready to help you