Have a Tax Question? Ask a Tax Expert
The sale of the land now is going to be taxed on the gain. Because you inherited you do receive the value in 2001 as your cost.
You will use the difference in cost and sale price as your gain or loss to report.
There is no exemption from the tax but you may have no Capital Gains Tax to pay depending on your income tax bracket.
The tax rate on long-term capital gains is 15%, while those in the top bracket pay 20% and those in the 10% or 15% tax brackets pay 0%.
Depending on your other income and your regular rate you may not have to pay capital gains tax on the sale.
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