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emc011075
emc011075, Tax adviser
Category: Tax
Satisfied Customers: 2319
Experience:  IRS licensed Enrolled Agent and tax instructor
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I live in nc. i plan on selling 3 acres of land than the tax

Customer Question

i live in nc. i plan on selling 3 acres of land for less than the tax value. do i pay taxes on it?
Submitted: 1 year ago.
Category: Tax
Expert:  emc011075 replied 1 year ago.

Hi. My name is ***** ***** I will be happy to help you. When you sell investment or personal property you may have capital gains depending on your basis in the property. Your basis are purchase price plus improvements you have done.

If you sell it for less than your basis, you have no capital gains. However if you sell it for more than your basis, you will have capital gains to report.

For instance you purchased the land 5 years ago for 25K and now you are selling it for 26K. You will have $1000 of capital gains.

Expert:  emc011075 replied 1 year ago.

How did you acquired the land? If you purchased it, your basis will be the purchase price plus improvements. If you inherited it, you basis will be fair market value of the land on date of inheritance. If you received it as a gift, your basis will be same as the original owner's.

You can also deduct selling expenses, including real estate agent's commission.

capital gain/loss = sales proceeds - your basis - expenses of sale.

Let me know if you have any questions.

Expert:  emc011075 replied 1 year ago.

Any questions? Is there anything else I can help you with today?

I see you offline now. So if this answered your question, please take a moment to rate my response so that I may receive credit for assisting you today. However, if you need clarification, or want to discuss this issue further, let me know. Thank you.

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