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I inherited an empty building lot (60x120) in ...

I inherited an empty building...
I inherited an empty building lot (60''x120'') in 2005- I intend to sell it shortly. Will I have to pay a Capital Gains tax? Property is located in Island County of Washington State. Grandparent paid $9k over 20 years ago, I paid nothing (except current taxes the last few years), should sell for just over $30k. What''s the damage (with regard to cap gain)?
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Answered in 1 hour by:
8/2/2008
Sandi Hargrove, SkyHawks
Sandi Hargrove, SkyHawks, Master Tax Advisor, Enrolled Agent
Category: Tax
Satisfied Customers: 1,257
Experience: I am a Master Tax Advisor and Enrolled Agent. I have 40 years experience. Trucking specialist.
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Your sales price minus expenses of the sale minus the fair market value of the lot on the date of death will be your capital gain/loss. Any capital gain will be treated as long term which will have a maximum tax of 15%. Use "inherited" as the purchase date when reporting the sale on your Schedule D attached to your tax return.

The purchase price of your grandparent will have no effect on your capital gain.
Sandi Hargrove, SkyHawks
Sandi Hargrove, SkyHawks, Master Tax Advisor, Enrolled Agent
Category: Tax
Satisfied Customers: 1,257
Experience: I am a Master Tax Advisor and Enrolled Agent. I have 40 years experience. Trucking specialist.
Verified
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Sandi Hargrove, SkyHawks
Sandi Hargrove, SkyHawks, Master Tax Advisor, Enrolled Agent
Category: Tax
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Experience: I am a Master Tax Advisor and Enrolled Agent. I have 40 years experience. Trucking specialist.

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