Legal Question in Tax Law in Michigan

tax pecentage on vacant land sold

We sold 40acres of vacant land, bought it for $l,000. 38yrs ago,sold it for $100,000. ,$99,000. profit, what percentage do we have to pay in taxes, 10%,20%, or 28%? It was not used for business, had planned to buils someday, but never did. We bought a house with 12 acres less than two mos, later, but had put the check in the bank and now have to pay a percentage on it, did n't know about letting the realtor the check untill we bought the other property and home. Ask the I.R.S. 3 different got 3different answers, and got a 4th answer from H&R BLOCK, so I'm at a loss what to do. Do I file a Schedule D form, the form seems to be for something other than what I need, I see nothing on it on how to do the percentage on the $99,000., it looks like it wants me to do 28%, and everyone says thats for collectables, which the land was not, and I have no 401K,stocks bonds or anything remotely like that. Sure would appreciate a correct answer from someone A.S.A.P. This property is in Frederic just north of Grayling MI 49733 ZIP CODE


Asked on 3/09/07, 11:28 pm

1 Answer from Attorneys
Rochelle Guznack Law Offices of Rochelle E. Guznack, PLLC

Re: tax pecentage on vacant land sold

You will most likely pay the long-term capital gain tax on this property, using $1,000 as your basis. Sorry, but this is not really the appropriate forum for a complicated tax question. You need to consult with an accountant or a tax attorney.

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Answered on 3/11/07, 1:10 pm


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