Legal Question in Tax Law in Florida

good question

I owned 50 acres that ive lived on for 5 years. I sold 20 acres but not where my house is. It is open land for 120,000. I still owe approx 140,000. Do i have to pay capitol gains. I see where you dont have to pay if you lived on for more then a year but i actually dont live on the piece i sold. It was part of where i lived but like i said it was an open part.I still live in the house.

Thanks


Asked on 9/19/01, 12:58 pm

1 Answer from Attorneys
Sanford Martin Martin Law Office

Re: good question

Your question does not provide essential information required for a complete answer. Generally, if your cost basis in the land is less than the net amount received, you are liable for capital gains income tax on the transaction. Whether you resided on the portion sold is not relevant since it does not appear that you could treat it as a sale of a residence subject to a credit because of your age. You should take all your information relating to the transaction to your tax preparer or tax attorney who can advise you regarding procedures to minimize the effective tax, and, importantly, to advise you on tactics to minimize the taxes on sale or disposition of the remaining 30 acres.

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Answered on 11/07/01, 10:16 am


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