Legal Question in Tax Law in Oregon

Re: capital gains

Hello, here is the short answer: you will have to pay capital gains tax on the amount of your gain. Your gain will equal your basis in the property (probably what you paid for the item, or if you inherited the property then it will be the fair market value claimed on the decedent's estate tax return) plus any costs you paid to improve and sale the property minus any depreciation you had taken on the property (if any). Take the $100,000 and subtract the amount from the last sentence and that will probably be your taxable gain. Then you apply the appropriate tax rate. This depends on if you owned the property for more or less than one year. Because it will probably be defined as "art" the rate will probably be 28%. You will also have to determine if Oregon will impose a tax on the gain. You should speak to your tax preparer about how to account for this sale. By the way you can also consider tax planning opportunities, such as accelerating any capital losses to offset the capital gain. Your tax advisor should be able to help you with that as well.

As for reinvesting in the proceeds in property to avoid capital gain taxes for a period of time, that might be possible if this �art� was used as business property. Then you might be able to do a 1031 exchange for other business property. You will have to speak to your advisor about that.

I hope that was helpful. Nonetheless nothing in this post should be considered tax or legal advice. You must speak to your advisors about your particular situation. Good luck.