Can anyone tell me the tax consequence of the following land transaction? - suburban estates in holopaw florida
My sister is a doctor full time. It has 15 acres of gardens, S-real naked for 10 years. The property was bought for 300,000 dollars and was held solely for investment. She is now interested in the sale of real estate. She wants the property with the county at 30 Residential lots to register and then sold for $ 1500000 in a single operation to a company in which one partner 40 percent. The club then add roads and improvements at a price of $ 400,000 and sell the lots ofr $ 73,333 each. My sister has a sufficient income available to support the tax rate of 35%.
Saturday, February 6, 2010
Suburban Estates In Holopaw Florida Can Anyone Tell Me The Tax Consequence Of The Following Land Transaction?
3 comments:
How the devil his sister in her homework?
The question is whether hidden property qualifies as an asset in his hand. Want to see the art. 1237 of the Code and sec. 1221.
Sounds like a question from the textbook tax for me. In a bit rusty, but it looks like the earth as a contribution to society of people who are now treated more basis in the money that you can get when the "starter" or something like that. That is really not so difficult when you book you must experience.
When the sale of 1.5 million would have to pay federal taxes on the basis of the profit from the sale. Be careful track of all expenses incurred during the process to stop. For a conservative rate of 35% is reasonable for the federal government estimated payments that must be paid by January 15, 2007. They want to know how much of the estimated taxes of state have to pay, because each state has different rates.
As for the club, 35% seems reasonable.
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