Legal Question in Tax Law in Florida

sale of vacant property/ capitol gain tax

A no profit agency wants to buy my vacant lot. they had it assessed for 50,000 although they want to buy it for $70,000.00 and give me a gift deduction for the IRS of $20,000.00. iProperty assessed by county for only $ 18,000.00. This willallow me to avoid any capitol gains as I only paid $1000.00 for the property 30 years ago. This does not seem right,although this would be good for me, I feel the agency is deceptive in this, and I do not want to get in trouble with the IRS. Please advise..


Asked on 6/12/07, 9:11 am

1 Answer from Attorneys
John DeLancett Law Offices of John DeLancett, PL.

Re: sale of vacant property/ capitol gain tax

While your facts are too sketchy, it doesn't sound good. If it's only worth 50, then representing its worth at 70 may be a fraud on the IRS. Also, if they buy it for 70, your gain is 69. I doubt a charitable contribution of 20 will offset the tax. Also,you need an appraisal to support a donation of land to show its value.

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Answered on 6/12/07, 12:08 pm


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