Re: taxes on land sale

Posted by paul on September 28, 2006 at 21:39:55 from (66.44.132.109):

In Reply to: taxes on land sale posted by centmo on September 28, 2006 at 14:19:25:

Lots of elderly farmers rent out their land, and let the land pass on to their heirs upon death. At the current time (and these laws change every few years, nothing in stone) the heirs get to 'recieve' the land at current basis. Then the heirs can sell it and owe very little capital gains.

This assumes the county will not take the land as payment for old home, etc. (They have other assets that cover old age expenses.) Also assumes the hiers are worthy of getting the assets, etc. ;)

Many sticky issues with this, but it is _one_ way for _some_ to deal with capitol gains taxes.

Otherwise, govt will take the price your folks get for the land, subtract what they paid for the land, and take about 15% of that for the capitol gains tax.

As mentioned, there are homesteading deals, and other exceptions, but they generally are minor on farm land.

Just general ideas - see a good CPA to help yourself out!

--->Paul

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