Hello,
I sold a piece of land in early 2012 and am wondering about the tax consequences. It was family land which had been signed over to me by my mother a few years ago. It was never my principal residence (there was no house on it). I did not receive any income from this land, it just sat unused until I decided to sell it. I am in the 25% tax bracket.
I would like to plan ahead if possible regarding how much I might have to pay. Will I pay long term capital gains, or since it wasn't my residence would it be considered investment property? (I own no other property, I rent an apartment.) A friend mentioned if it were investment property and I never made any money off of it I could write that off as a loss? Any help would be appreciated.
Thank you,
DN
I sold a piece of land in early 2012 and am wondering about the tax consequences. It was family land which had been signed over to me by my mother a few years ago. It was never my principal residence (there was no house on it). I did not receive any income from this land, it just sat unused until I decided to sell it. I am in the 25% tax bracket.
I would like to plan ahead if possible regarding how much I might have to pay. Will I pay long term capital gains, or since it wasn't my residence would it be considered investment property? (I own no other property, I rent an apartment.) A friend mentioned if it were investment property and I never made any money off of it I could write that off as a loss? Any help would be appreciated.
Thank you,
DN