Updated over 9 years ago on .
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Lowest tax for Sale of land
Hello all,
I have a family member that has held a plot of land in Texas for about 20 years. Has ready to sell because he may need the funds soon. Its undeveloped and any and all buildings that were on it in the past have been removed. He currently has an agricultural exemption on it as well which makes his real property taxes very low. He wants to know the best and lowest tax route to sell at market or transfer to a family member for cash.
What I know is he holds it at a pretty large Long term capital gain, which would generate a 15% tax liability upon a sale at market. That is option number one.
What I know very little about is the tax effects of a trust on this situation. I've done very little research on this topic and need some help.
Thanks in advance for any help.
Michael Koncaba