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Was this just a vacant piece of land?
Also can you please tell me if you file your taxes as single or married?
How much other total income do you have for the year (including your spouse if you are married)?
Hello again charles,
Thank you for the additional information.
If you inherited this property from your father, your basis would be whatever the fair market value was of the property on the day he died. If that was $4,000 and you sold the property for $14,000, you have a long term capital gain of $10,000 which would be taxed at a rate of 15%. So you would owe $1,500 in taxes on the sale of this land. This is assuming the land is sold in the year 2010. If the lot is not sold until next year, the capital gains tax rate is scheduled to increase to 20%.
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Thank you charles