If I already have a home of my own and I would like to sell a empty lot separate from the lot my home is on, how does capital gains tax play in this? I did some research and saw that since I've owned the property for more than a year, I will only pay 15% in capital gains instead of the usual 30-35%. I just wanted get more inputs. If anyone knows a CPA they would recommend in Portland, that would be much appreciated.
When you acquired the home - was the empty lot included in the purchase of the home?
If the answer is yes - a portion of the purchase should have been allocated to the home and a portion allocated to the purchase of the vacant land.
The sale of the vacant lot will be subject to capital gains tax.
is the property located in Oregon or Washington?
If the property is located in Oregon - you may be also subject to state income tax
If you live in Washington and the property is located in Washington - you may not be able to escate state taxation.
The question you have is if you are able to sell the lot without the house. I am not sure you would be able to split it up if it is on the same tax lot.
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