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Ask Lane Your Own Question
Category: Tax
Satisfied Customers: 9730
Experience:  Law Degree, specialization in Tax Law and Corporate Law, CFP and MBA, Providing Financial & Tax advice since 1986
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i forgot to confirm this with you if I end up selling this

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i forgot to confirm this with you if I end up selling this land and getting the unlike property the capital gains would be on the price I sold minus the expenses I incurred with this land (as I mentioned above, attny fees, etc) or just on the sale price?

NPVAdvisor :

Hi there!

NPVAdvisor :

Thanks for asking for ME

NPVAdvisor :

Yes, the capital gain on any capital asset you sell is as follows:

NPVAdvisor :

NET sales price (you can deduct sales commission and other selling costs) ... Minus ... Your basis in the property (which is your purchase price PLUS an improvements)

NPVAdvisor :

so the selling costs (because they reduce the price) and the improvements to the property (because they raise your tax basis) reduce the capital gains

NPVAdvisor :

... and this isn't related to new purchase at all ... UNLESS you decide to do the swap and do it as a 1031 exchange

Lane and 3 other Tax Specialists are ready to help you

Thanks again Marta

Good luck with everything!


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