Have a Tax Question? Ask a Tax Expert
The amount that you will have to pay in capital gains tax depends on how much of a gain you incur. What is the cost basis of the land, the original purchase price of the land? I see that you are planning to sell the land for $440,000. In order to determine your true capital gains, you start with the cost basis, then subtract the selling price. If the selling price is more than what you paid, you have incurred a gain. Based on your AGI, you will likely pay 15% on the capital gains.