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Lev
Lev, Tax Advisor
Category: Tax
Satisfied Customers: 28082
Experience:  Taxes, Immigration, Labor Relations
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We sold some land that was gift deeded to us. How can I

Customer Question

We sold some land that was gift deeded to us. How can I defer or redirect some of the profits so we can lower the taxes due?
Submitted: 10 months ago.
Category: Tax
Expert:  Lev replied 10 months ago.

If order to defer (not avoid!) tax liability - the sale transaction may be structured as section 1031 like-kind exchange.
There are special rules and you should not receive proceeds from the sale.

If you already sold the property and received proceeds - it woudl be too late for section 1031.

On the other hand - if you held the property more than a year - the gain is taxes at reduced long term capital gain rate - and that definitely provides some tax saving.

I will help to estimate your expected tax liability if needed.

Customer: replied 10 months ago.
308,000.
Customer: replied 10 months ago.
We were given the land in 1997
Expert:  Lev replied 10 months ago.

I assume 308,000 is your selling price - correct?
So we need to know your basis.

Expert:  Lev replied 10 months ago.

The basis of gifted assets is the LESSER of (1) donor's basis and (2) the fair market value at the time of gifting.
Please let me know these amounts.

Also to verify your tax liability - we need to know your filing status, other taxable income, deductions, etc.
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