Home Selling in 29360>Question Details

Linckeny7, Home Seller in 29360

have land to sell. Do I pay taxes on sell price even if it just cover what I paid (incl. property tax)?

Asked by Linckeny7, 29360 Wed Feb 29, 2012

Land is in SC.

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2
The type of gain, if any depends on the length of the holding period. Taxes do not add to the adjusted cost basis. Ask your CPA, good luck,
0 votes Thank Flag Link Wed Feb 29, 2012
You will pay property gains tax on any amount of the property you made a profit on. Basically if you purchased the property for $100,000 and sold it later for $125,000 then there is a capital gain of $25,000 and this is taxable at around 15% of the total, in some cases you may have to pay as much as 25%, property tax is not part is this equation as property tax could have been deducted each year. This means that you would have had to line deducted it on schedule A but if you did not have enough deductions then you would have opted for taking the standard deductible which again would have covered such items since you did not have enough itemized deductions.
0 votes Thank Flag Link Wed Feb 29, 2012
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