Thank you for your quick reply. You tax will be based on the amount of your gain. Your gain will measured by the sale price (less closing costs) less your basis in the property
(which is your purchase price plus the cost of any improvements, if any, you made to the land).
The long term capital
gains tax rate
at the state
level in California is 13.3 percent.
On the Federal
level, for 2013, the tax laws
of long term capital gains are as follows:
0% applies to long-term gains and dividend income
if a person is in the 10% and 15% tax brackets,
15% applies to long-term gains and dividend income if a person is in the 25%, 28%, 33%, or 35% tax brackets, and
20% applies to long-term gains and dividend income if a person is in the 39.6% tax bracket.
In addition, starting in 2013, capital gain
income will be subject to an additional 3.8% Medicare
tax for taxpayers with income at or above a certain threshold. This 3.8% Medicare surtax applies to taxpayers with “net investment income” in excess of threshold income amounts of $200,000 for single filers and $250,000 for married couples filing
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