Author Topic: tax on raw land sale  (Read 289 times)

Penny Lane

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tax on raw land sale
« on: August 23, 2017, 08:09:43 AM »
This may be a simple question.  I am selling land for a big gain-- no buildings, no improvements-- and I believe that this will a capital gain for tax purposes.  I am confused as to what rate I would pay.  AGI is about 85K for 2016.  I am seeing both 15% and 20% when ggling this.  Does anyone know what the rule  would be?  Thanks to all you helpful tax folks!

terran

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Re: tax on raw land sale
« Reply #1 on: August 23, 2017, 07:29:15 PM »
Capital gains income is added on top of your regular income. Any of the gain that falls within the 10% or 15% bracket is taxed at 0%, any of the gain that falls with the 25% through 35% bracket is taxed at 15%, any of the gain that falls within the 39.6% bracket is taxed at 20%. You can look up where those brackets fall based on your filing status here: http://www.schwab.com/public/schwab/nn/articles/Taxes-Whats-New