Updated over 5 years ago on . Most recent reply
Capital gains from dividing vacant land
I purchased 26 acres of vacant hunting/forest land in northern WI 6 months ago. The property is divided into a 6 acre parcel and a 20 acre parcel, and I plan to sell the 6 acre parcel first. Lets say I purchased the entire parcel for 80k, and I sell the 6 acre parcel for 30k within one year of owning the entire parcel. Do i have to pay short term capital gains tax on that 30k if i sell the other 20 acres for 70k after more than a year of owning it? Sorry if my question is confising...