I am a 38 year old male (11/10/1969 DOB) and located in Ky.

At my factory job, my W2 shows I made 34,608.35 (Box 1)... I paid $242 in property taxes on a lot I owned last year, but sold it Feb, 2007.

I originally paid $23,000 for the lot, in 2003. I sold it for $34,000, of course the realtor took their $2,040 and had small closing/lawyer fees etc.

After paying the loan off, which was still about $22,285, my check was $9,063.35, plus one for $500 that was given in good faith, from the people who purchased the lot from me.

How much will that affect my taxes this year?

Thank You, Brad

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Originally Posted by flyin99

I am a 38 year old male (11/10/1969 DOB) and located in Ky.

At my factory job, my W2 shows I made 34,608.35 (Box 1).......I paid $242 in property taxes on a lot I owned last year, but sold it Feb, 2007.

I originally paid $23,000 for the lot, in 2003. I sold it for $34,000, ofcourse the realtor took their $2,040 and had small closing/lawyer fees etc.

After paying the loan off, which was still about $22,285, my check was $9,063.35, plus one for $500 that was given in good faith, from the people who purchased the lot from me.

How much will that affect my taxes this year?

Thank You, Brad

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Anybody?

If your tax bracket is 15% you'll pay about $1300 more in taxes this year. Give or take. Your ACTUAL return, once finished, can be swayed a LOT in either direction based on things you did not list in this exercise.

You can do a return online for free right now without filing it to see what the actual effect would be. Then you'll know for sure and still have over two months to officially file it.

Quote:

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Originally Posted by flyin99

I am a 38 year old male (11/10/1969 DOB) and located in Ky.

At my factory job, my W2 shows I made 34,608.35 (Box 1).......I paid $242 in property taxes on a lot I owned last year, but sold it Feb, 2007.

I originally paid $23,000 for the lot, in 2003. I sold it for $34,000, ofcourse the realtor took their $2,040 and had small closing/lawyer fees etc.

After paying the loan off, which was still about $22,285, my check was $9,063.35, plus one for $500 that was given in good faith, from the people who purchased the lot from me.

How much will that affect my taxes this year?

Thank You, Brad

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You will report the sale of the lot on schedule D. Your cost basis is $23,000 plus $2,040 to the realtor plus small closing/lawyer fees. Plus you will also add property taxes if it was an investment property plus $500 as discount if given to the buyer.
Your profit is $3,4000 less your cost basis. This is long term capital gain.

Quote:

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Originally Posted by flyin99

I am a 38 year old male (11/10/1969 DOB) and located in Ky.

At my factory job, my W2 shows I made 34,608.35 (Box 1).......I paid $242 in property taxes on a lot I owned last year, but sold it Feb, 2007.

I originally paid $23,000 for the lot, in 2003. I sold it for $34,000, ofcourse the realtor took their $2,040 and had small closing/lawyer fees etc.

After paying the loan off, which was still about $22,285, my check was $9,063.35, plus one for $500 that was given in good faith, from the people who purchased the lot from me.

How much will that affect my taxes this year?

Thank You, Brad

---

You will report the sale of the lot on schedule D. Your cost basis is $23,000 plus $2,040 to the realtor plus small closing/lawyer fees. Plus you will also add property taxes if it was an investment property plus $500 as discount if given to the buyer.
Your profit is $3,4000 less your cost basis. This is long term capital gain.

He never said WHEN he bought the lot, but it IS likely a long-term capital gain.

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Originally Posted by AtlantaTaxExpert

He never said WHEN he bought the lot, but it IS likely a long-term capital gain.

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Yea it's up there... I bought in 2003, June was the month and I was going to build a house, but plans changed and I sold it last Feb 2007.

What is this long term capital gain stuff mean? I hate to be dumb, but I don't know... Thanks!

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Originally Posted by AtlantaTaxExpert

He never said WHEN he bought the lot, but it IS likely a long-term capital gain.

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So, to sum it up, since I usually get back from $1100 to $1500, that it will offset this and I may just not get anything back, but also won't have to pay in? Just trying to get this through my stubborn head... bear with me folks :)

Quote:

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Originally Posted by flyin99

Yea it's up there..........I bought in 2003, June was the month and I was going to build a house, but plans changed and I sold it last Feb 2007.

What is this long term capital gain stuff mean? I hate to be dumb, but I don't know...Thanks!!

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?

Noted!

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Originally Posted by AtlantaTaxExpert

Noted!

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You lost me on that one, but thanks for the help.

I put "Noted" to mark the posting as read but for which I have no additional input. Allows me to better track what I have seen and not seen.