I sold land in 2013 for $506,000. The base land value was $154,000 and it was a long term capital gain.
My wife and I file jointly and our AGI together (through our jobs) will be around $250,000 for 2013.
Can anyone give me a rough estimate of what my tax burden will be for property sold?
I live in GA.
Answer :
You need to provide here with your taxable income , NOT AGI As you said, as the amount of your AGI is $250K, then your taxable income when you file your return as MFJ must be more or less lower than $250K, then, for 2013, If I assume that your TI is between $142,700 and $217,450, then your personal tax bracket’d be 33% then you need to pay $52,800 as your LTCG tax to the IRS; 15%*($506,000-$154,000 (your adjusted basis of the land). There is no unrecatured depre recap , I mean size 1250 rule not applicable, since land is not depreciated as you can see.
Please visit the website here for your LTCG calculation; Capital Gains Tax Rate Calculator
You also need to check the LTCG rate for your state return with the Dept of Rev of GA.
Visit Asktaxguru for Online tax help
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