land sale tax question

[Sparticle]

We sold land this year and are wondering if anyone here knows the rules about paying taxes on the land sale. It was vacant land owned for 5 years. A small profit was made. Is it income? Do we report it? Thanks.

[Lazy J]

Capital Gains will be due, since it is long term it will be 15% for federal. I don't know what Missouri does for state taxes, but in Iowa it is taxed as normal income.

Jim

[rambler]

See a tax expert, but you will need to pay taxes on the net gain as mentioned.

--->Paul

[mldrenen]

it is a reportable capital gain, but the tax rate that you pay will be determined by your taxable income. you may even qualify for the 0% tax rate.

you should consult an accountant this year.

[Lazy J]

Corrected myself. Sorry.

[Sparticle]

Sounds good, thanks everyone.

[kritter8888]

but the capital gain can offset any capital losses if you had any. If not you might want to get rid of something that you have been thinking about but would loose a little money. You can go to IRS.gov to find out more info or you state gov website.