selling land


T

tracy

i plan on selling land that i own in kansas and will be
moving to tennessee. if i use the profit that i make on the
land to buy land in tennesee do i have to pay capital gains?
 
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I

IraS1

i plan on selling land that i own in kansas and will be
moving to tennessee. if i use the profit that i make on the
land to buy land in tennesee do i have to pay capital gains?
Yes, unless the "land" was a personal residence owned and
occupied by you for at least 2 out of the last 5 years. In
that case, you may be able to exclude some or all of the
gain.

Ira Smilovitz
 
J

John H. Fisher

i plan on selling land that i own in kansas and will be
moving to tennessee. if i use the profit that i make on the
land to buy land in tennesee do i have to pay capital gains?
Consider a "Like Kind Exchange". Review the material
included in this publication BEFORE you sell or buy and find
a qualified intermediary to assist you:

http://www.irs.gov/publications/p544/ch01.html#d0e2135

"Jack" - John H. Fisher - (e-mail address removed)
Philadelphia, Pa - Atlantic City, NJ - West Wildwood, NJ
My Newsgroups & Boards at: http://members.aol.com/TaxService/index.html

Where Ignorance is bliss, 'tis folly to be wise!=:)
 
A

Arthur L. Rubin

tracy said:
i plan on selling land that i own in kansas and will be
moving to tennessee. if i use the profit that i make on the
land to buy land in tennesee do i have to pay capital gains?
If this is not personal-use property (i.e., investment
property or income property), and you do what is called
a section 1031 exchange of the KS property for the TN
property, you may owe no currect capital gains tax.
(You will need to pay capital gains tax to each of
KS and TN which has an income tax when the new property
is sold.)

If the land is considered part of your primary residence,
the entire sale may be covered by the $250,000 exclusion
of capital gains of sale of your personal residence. Buying
land or property in TN is irrelevant.

Otherwise, you need to pay capital gains tax.
 
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D

David Woods

tracy said:
i plan on selling land that i own in kansas and will be
moving to tennessee. if i use the profit that i make on the
land to buy land in tennesee do i have to pay capital gains?
Yes.
 

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