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Hello and welcome to Just Answer my name is Bill.
What did you pay for the property originally?
What kind of Property is it ? Land? Building? Or?
Was this property inherited?
THE PPERTY WAS INHERITED WITH A 1/2 BAIS OF $40.000 MIN 1998.
THE PROPERTY AS INHERITED FROM MY DAD IN 1994 AND MY MOM IN 1998.
THE PROPATE APRAISER LISTD MY MOTHERS SHARE IN 1998 AS $40,000.
I AM ASUMING IT WOULD HAVE A PRICE OF AROUND $80,000 AS A WHOLE AT THE TIME I HAD FULL OWNERSHIP.
I HAVE HAD MEDICAL PRBLEMS THIS YEAR AND I REALLY NEED THE MONEY SO THE BEST I CAN DO IS GET 45,000. I WOUD LIK TO TAKE THISOSS OVER 3 YEARS BUT IT WOLD BE NICE TO HAVE ALL THE MONEY NOW.
THE PROPERTY IS A VACANT LOT.
IN 1974 MY MOM AND DAD AND I PAID AROUND 3,500 FOR IT.
NEXT QUESTION: WOULD I BE BETTER TO TAKE 1/2 THE MONEY THIS YEAR AND THE OTHER 1/2 IN JANUARY. I KNOW I HAVE SO MUCH MEDICAL EXPENSE I DO NOT NEED A WRITEOFF BUT I NEED THE MONEY.
Could you sell it on an installment basis ?
WHAT DO YOU MEAN?
Sell it to someone where they make payments to you as opposed to giving you a check for the whole amount
I HAVE SOLD IT TO THE MAN WHO LIVES NEXT DOOR TO IT. HE IS GETTING THE 45,000 AND SINCE I AM LUCKY TO SELL IT IN TIS ECONOMY. I COULD GET 1/2 NOW AND HALF NEXTJANUARY. HE DID NO WANT TO PAY MONTHLY.
So you will report 1/2 of the sale this year and the other 1/2 next year.
IF THAT I A TAX ADVANTAGE AND THERE IS A FORM THAT I CAN GET ALL THIS INFORMATION ON WITHOUT GETTING THE IRS MAD.
Schedule D is where you need to report this sale if the land was held only for personal
Personal Land is an investment property and would be a capital loss so you would only need to report $3,000 of the loss each year until it is used up.
The land wasn't used as a business property was it?
SO DOES THAT MEAN I CAN TAKE THE 45,000 ALL NOW AND GET 3,000 LOSS EACH YEAR FOR THE NEXT 10 YEARS?
yes the next 15 years actually
THANKS SO MUCH
sorry if your loss is 35,000 then for the next 12 years
YOU GET THE $30.00 BUT I DON'T KNOW WHT I DO TO GIVE IT TO YOU.
DO I HAVE TO HAVE CAPITAL GAINS TO OFF SET THIS LOSS OR CAN I USE IT AS A REGULAR TAX WRITEOFF FOR INCOME?
if you sell other capital assets like stock or mutul funds for a gain they would offset the loss but you would need to have over 35,000 in gains to offset the 35000 loss
you do not need any gains to go with the loss to take the $3000 loss
It will reduce your other taxable income by $3000
press the green accept button so I'll get paid