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Is it legal to tax completely underwater land?

I sold vacant land in 2011, I inherited the land in 2004. Do I pay tax on the difference in market value?

  • I inherited farm land in 2004, my Texas property tax form states market value at that time was around $150,000. In 2011 the tax value was around 210,000; I sold the land for 200,000. So do I pay capital gains tax on the difference between the 2004 value and the 2011 value. And can I use the property tax value to establish that? Or do I have to pay capital gains tax on $200,000?

  • Answer:

    I think you will pay capital gains on the difference between about $150,000 and the sale price $200,000 minus any expenses

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I think you will pay capital gains on the difference between about $150,000 and the sale price $200,000 minus any expenses

Kenny

not if you create an R and D operation and it runs up viable expenses.

kemperk

You will pay capita gains tax on $60,000.00 for 2011.

MARK

You will pay capita gains tax on $60,000.00 for 2011.

MARK

not if you create an R and D operation and it runs up viable expenses.

kemperk

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