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Hi. My name is ***** ***** I will be happy to help you. When you sell investment or personal property you may have capital gains depending on your basis in the property. Your basis are purchase price plus improvements you have done.
If you sell it for less than your basis, you have no capital gains. However if you sell it for more than your basis, you will have capital gains to report.
For instance you purchased the land 5 years ago for 25K and now you are selling it for 26K. You will have $1000 of capital gains.
How did you acquired the land? If you purchased it, your basis will be the purchase price plus improvements. If you inherited it, you basis will be fair market value of the land on date of inheritance. If you received it as a gift, your basis will be same as the original owner's.
You can also deduct selling expenses, including real estate agent's commission.
capital gain/loss = sales proceeds - your basis - expenses of sale.
Let me know if you have any questions.
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