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Richard, Tax Attorney
Category: Tax
Satisfied Customers: 55442
Experience:  29 years of experience as a tax, real estate, and business attorney.
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Im in the 10 percent tax bracket. My mother deeded me 136

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I'm in the 10 percent tax bracket. My mother deeded me 136 acres of farmland with our family home for $5.00 love and affection 3 years ago. 6 months ago my brother gave me a quitclaim deed for any rights he may have in 101 acres of the land and I gave him a quitclaim deed for any rights I may have in 35 acres of the land to settle a legal law suit or land disput between us. Say I sell my 101 acres of the farmland and home to a big company for 5 million dollars and close the deal before December 31, 2010. How much would I have to pay in long term capital gains or what percentage of the 5 million dollars would I owe in taxes. Would my long term capital gains be 0% or 5% or 10% or 15% of the 5 million. Approximately how mch in taxes would I owe the IRS. I live in SC so I would also owe what percentage in state tax. Thanks, XXXXX XXXXX

Good evening. You would pay long term capital gains tax of 15% times the gain at the federal level. Your gain amount would be $5,000,000 less whatever your mother's basis in the 101 acres was as it carried over to you when she gifted it to you. You would pay tax at the rate of 3.92% in SC state tax.



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