Q: In 1990, my father gifted 65 acres of land to me. This year, I had a survey done and the land was actually just over 65 acres.
In 1990, the land was appraised at $334,000. It’s worth a lot more today.
I want to sell 30 acres. On Sunday morning, I heard your radio show and you mentioned to a lady that the capital gains tax was based on your income.
Let’s say I get $35,000 per acre and my average income is $35,000 per year. How or where do I find out how to figure the capital gains tax I would pay?
By the way, I mentioned your show to my son (he’s a student at Georgia Tech) and he knew who you were right off. Good show. Thanks for the help.
A: If you sell 30 acres at $35,000 per acre, you will likely be paying capital gains tax at the highest rate — 15 percent plus your state tax. Your accountant or tax preparer can run through the numbers for you.
Thanks for listening — and thanks to your son for listening. He sounds like he has a good head on his shoulders already.
By the way, my show is podcasted at iTunes or you can listen online at the website at any time.
Sept. 25, 2006.
I have a small lot 2.71 acres over paid 25k 21 years ago asking 45.500 would I still be in that 15% range. Undeveloped land.