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Capital Gains taxes in state of Montana

Hi, My extended family purchased...
Hi, My extended family purchased some raw land in Montana 10 yrs ago for $40,000. The plan was to develope the land for our family gatherings. That didn't happen, now we have an offer of $80,000 for the land. We're aware of the 1031 tax advantage but want to know what the capital gains would be on the situation. Thank you for your time and knowledge in advance.
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Answered in 59 minutes by:
3/30/2006
Lev
Lev, Tax Advisor
Category: Tax
Satisfied Customers: 30,663
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For use 1031 tax deffer option the property has to be treated as for business or investment - not personal use.


The gain from sale of the property will be $80,000 -$40,000 = $40,000 and will be taxed at reduced capital gain rate 5% or 15% based on your income. the taxes will be between $2000 and $6000 + Montana taxes

Lev
Lev, Tax Advisor
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