How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site. Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask jgordosea Your Own Question
jgordosea
jgordosea, Enrolled Agent
Category: Tax
Satisfied Customers: 3161
Experience:  I've prepared all types of taxes since 1987.
3653323
Type Your Tax Question Here...
jgordosea is online now
A new question is answered every 9 seconds

i HAVE A PIECE OF PROPERTYT THAT I HAVE OWNED FOR 15 YEARS.

Resolved Question:

i HAVE A PIECE OF PROPERTYT THAT I HAVE OWNED FOR 15 YEARS. tHE PURCHASE PRICE WAS $35,000 I PUT $65,000 IN A TOTAL REMODEL OF THE HOME WHEN PURCHASED. i HAVE THE OPPORTUNITY TO SELL THE 119 ACRES AND HOUSE FOR $250,000 WHAT WILL MY CAPITAL GAINS TAXES BE IF I AM IN A 28% TAX BRACKET. i LIVE IN MISSISSIPPI.
Submitted: 9 years ago.
Category: Tax
Expert:  jgordosea replied 9 years ago.

Greetings,

Your gain will be your purchase price plus improvements plus costs of buying and selling (see the settlement statements subtracted from the sales price.

So, 250K - 35K -65K - costs of selling and buying = less than 150K gain

Long term capital gains are taxed at 15% so the tax on 150K = $ 22,500 regardless of your tax bracket.

If this was a primary residence that you own and occupy for two years you could exclude the gain and not pay federal tax.

Mississippi levies no capital gains tax on in-state investments

I hope this helps for estimating your tax on the capital gain.

 

 

jgordosea and 2 other Tax Specialists are ready to help you