This is a tax planning
question. Last August, we purchased (through refinance) our home and 40 acres. This was financed at 80% of the appraised value of 405,000.00. The appraisal for the house was 265,000.00. At this consideration this appraisal determines land value at approximately 3,500.00 per acre.
We intend to sell some acres, and at current market in our area, it will be sold at a rate
higher than 3500.00 per acre. How do we determine what the tax rate
will be? There will a mortgage to pay off at approx. 317,000.00. We are a married couple, and our 2015 tax return
of 103,000.00. Our projected income this year, remains about the same. We can sell the property
to coincide with the year and one day to qualify as a long term investment, if this applies in this case.
Are there any tax strategies, we can use to assist with any tax liabilities
? Are there any taxes also, that would apply in Tennessee for the sale of property? Thanks in advance for any information you can provide.