Have Tax Questions? Ask a Tax Expert for Answers ASAP
Hello, how are you today.
What did you purchase the property for initially, and how long ago?
Your capital gains tax will be based on the difference between what you purchased the property for and the sales price you received.
If the property sold is your primary residence the entire amount of capital gain would be excluded
If your income is $35,000 per year gross, you are likely in the 10-15% tax bracket
If that's the case, your long term capital gain rate is 0%
The property was inherited from his mother. We have had the property since 1994. The property was valued at 7500/acre back then and we sold it for approx. 13,000/acre.
So you would have a capital gain of about $23,000
With your income, you are in the 10-15% tax bracket
so your capital gain rate will be 0%
So you should not have to pay capital gains tax
I hope this helps you with your question, and was good news.
Would this also be true for WV State Tax?
Please let me know if I can be of any further assistance. If not, please rate my response "excellent" so that I may receive credit for assisting you today.
Would this also be true for WV State tax?
West Virginia capital gains tax is 6.5%
So you would owe 6.5% of $23K
So 6.5% of the 23,000 capital gain...that's what I thought. Thanks.
Thank you for your rating. Please let me know if I can be of any further assistance. Thanks again for using JustAnswer.com