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Wallstreet Esq.
Wallstreet Esq., Tax Attorney
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Experience:  10 years experience
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I am selling property in Tn, 55 acres. I live in GA, my

Customer Question

I am selling property in Tn, 55 acres. I live in GA, my wife, separated lives in PA. Our last years AGI was 38K. My asking price is 440,000. What capital gains taxes, fed and state, will we have to pay?
Submitted: 1 year ago.
Category: Tax
Expert:  Tax.appeal.168 replied 1 year ago.

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.