Hi ***** been a tax preparer
for 27 years and I'll be helping you today.
Yes, you will have to report the TOTAL amount you receive the for the removal/relocation of the barns. Since you no longer farm the acreage, you will report this on line 21 of your tax return
as "other income
not subject to Se tax.
In answer to how much tax the $51000 bid will cost you see below: (This information is based on 2014 tax year figures, but it will absolutely be in the ball park.)
Less $6200 Standard deduction
Less $3900 Personal
$39900 taxable income
TOTAL TAX FROM TAX TABLE
ON $39900 IS $5613
$50,000 taxable income
plus $51000 payment for relocation of barns
less $6200 standard deduction
less $3950 personal exemption
$90000 taxable income
TOTAL TAX ON $90000 IS $18313
So the additional tax on the $51000 is $12700
So the additional $51000 would cost you $12700 in tax
The reason the difference is so dramatic is because single filers pay more in tax than any other fling statuses except for people who file married filing
The link to the tax table I used is below:
Only you can decide what you want to do, but if you divide $12700 by $51000, you get 25%. That is the additional tax amount.
That means you get to keep 75% of the $51000
I hope this helps
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