QUESTION
I have some property that I purchased 16 years ago from my dad''s estate, and I am thinking of selling it, but not sure about the laws regarding
Asked on Aug 16th, 2012 on Business Law - Alabama
More details to this question:
Reinvesting it and the time frame to avoid taxation on the sale. There is no house on the property, it is all woods. I am in Kentucky as the drop down would not work.
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The sale of this property will generate a taxable capital gain, regardless of how and when you reinvest the proceeds. A former law permitted the deferral of tax on the reinvestment of proceeds of sale of a personal residence, but it applied only to certain actual personal residences (which this is not), and the law has, in any event, been superseded. Because of your holding period, the maximum applicable federal tax rate will be 15%.
Answered on Aug 16th, 2012 at 9:32 PM