If you paid $105,000 for the land and added another $3,000 in improvements, then your basis would be $108,000. The dues you paid and county taxes would not enter in to figuring any gain and they would not add to your basis.
If you sell the property for $375,000 and you have a basis of $105,000, you would have a capital gain of $270,000. This would be taxed as a long term capital gain at a rate of 15%, or a total of $40,500. That would be the federal taxes
due. In addition, you would owe CA state taxes at a rate of approximately 9%, for a total of $24,300.
There are talks in Congress and strong possibilities that the capital gains tax rate may increase next year to 20%, so you may want to consider selling the land in 2009 while the current long term capital gains tax is still capped at the 15% level.
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Thank you George.