Taxes on the sale of unimproved property?

-I sold a piece of property and i am looking for taxes owed. Or how i can reinvest the money instead of paying the taxesSale of the unimproved nonbusiness property has been completed and will have to be reported as the sale of a personal capital asset and will be reported on the schedule D of the 1040 income tax return and if it was owned for MORE than 1 year will be reported in section II as a long term capital gain on your 2011 income tax return when it is filed next year in the 2012 tax filing season.



2010 Instructions for Schedule D

Next year you will have the use the 2011 schedule D for this situation that you are now in at this time for the 2011 tax year.



http://www.irs.gov/instructions/i1040sd/鈥?/a>



Hope that you find the above enclosed information useful. 07/04/2011
Deborah,



If the sale has not closed, you still have time but you need to act fast.



1. Figure out how much capital gain tax you will really owe. If it's relatively low, your best option may be to pay.



2. If you provide owner financing, meaning that you will not be paid the full amount up front but receive payments over several years - you can spread your capital gain taxes too.



3. The most common approach however is "1031 exchange" also known as "like-kind exchange" or "tax-deferred exchange." It can allow you to buy another property and avoid paying capital gain tax until you sell the new property. The key is that you MAY NOT touch the money from the sale. The money has to be escrowed and then applied towards your next property directly from escrow. The only practical way to do this is to hire a third party known as "qualified intermediary." There're several companies who provide this service, and I suggest you stay away from small companies that can easily fold in today's economy.



Some potential pitfalls:

- The intermediary must be engaged BEFORE you close the sale, so do not wait a single day. Find such company ASAP and get them involved.

- Once you sell this property, you will only have 45 days to find the new property, and you will have to identify your new target property in writing.

- You will have 6 months to actually close on the new property, starting from the date of sale for your existing land.

- You can buy any US real property, developed or undeveloped, or even several properties under the exchange transaction. However, they must be used for investment or as a rental property, not personal. It means you cannot buy a house for yourself via exchange.

- The rules are extremely strict, and there're more of them than I mentioned. One misstep, and the game is over. Find an experienced intermediary company and follow their instructions very carefully.



Also, please read my article referenced in links. Good luck!



Michael Plaks, EA, Houston TX

Real estate specialist

www.MichaelPlaks.com
Since you have already sold the property, the ONLY option you have is to pay the taxes.



Had you asked before you sold (or even when you bought the property), we could have given you suggestions.



There is no reinvest rule. Now or ever. The poster who says you have 1 year is wrong.
You could have reinvested in like kind property under Internal Revenue Code Section 1031 and defer taxes on the gain. You should have done your research before closing the sale because it is too late now.
no, it doesn't work that way

you will pay taxes on the gain you make with the sale
First guy is correct but you have one year to invest it if you invest in another house you won't have to pay capital gains tax as for state sales tax it varies by state. You can call a local Realtor and they can advise you on the law where you sold the house and where you can invest it at. You could by U.S. savings bonds wit hit and it would be considered invested but talk ot a real estate agent to be sure or a tax accountant.