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Richard
Richard, Tax Attorney
Category: Tax
Satisfied Customers: 54708
Experience:  29 years of experience as a tax, real estate, and business attorney.
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What would be the taxes on land you owned for less then two

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What would be the taxes on land you owned for less then two years if you sale in California?
Hi! My name is XXXXX XXXXX I look forward to helping you!

Can you give me a bit more information? Is this simply land? And, have you owned it at least 12 months? Thanks.
Customer: replied 3 years ago.

Yes this is just land that I have owned for about 15 months in California.

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 concerning taxation 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 jointly.



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