Frizlefrak
Well-known member
I'll try to make it short and sweet
2001: Bought 33 acre tract of raw land for $29,900, paid cash.
2002: Drilled well on property. $11,000
2003: Had Septic Tank installed. $3200
Roughly $44,100 of cost involved.
2012: Sold land. Buyer paid cash, $55,000. No home was ever built. Sold as raw land with improvements. We used to proceeds to pay off the mortgage on our residence, thus netting us 100% debt free (wooohooo!!)
We normally do our own taxes, but this year we're having a pro do them. Does anybody know if we will owe income tax on the $10,900 profit on the land? We will get the answer soon anyway, just curious if anyone has ever done something like this, and what your tax liability, if any, was?
If we owe it, no big deal....not trying to get out of anything we legitimately owe. Would just like to budget for the extra tax.
T.I.A.
2001: Bought 33 acre tract of raw land for $29,900, paid cash.
2002: Drilled well on property. $11,000
2003: Had Septic Tank installed. $3200
Roughly $44,100 of cost involved.
2012: Sold land. Buyer paid cash, $55,000. No home was ever built. Sold as raw land with improvements. We used to proceeds to pay off the mortgage on our residence, thus netting us 100% debt free (wooohooo!!)
We normally do our own taxes, but this year we're having a pro do them. Does anybody know if we will owe income tax on the $10,900 profit on the land? We will get the answer soon anyway, just curious if anyone has ever done something like this, and what your tax liability, if any, was?
If we owe it, no big deal....not trying to get out of anything we legitimately owe. Would just like to budget for the extra tax.
T.I.A.