From: "Jmac Wilson" 
Newsgroups: misc.invest.real-estate
Subject: Re: Capital gains on Land Sale
Date: Wed, 3 May 2006 23:57:07 -0400


 wrote in message 
news:1146702024.010142.136930@g10g2000cwb.googlegroups.com...
> You should check with a CPA to be sure, but I'm sure you'll have to pay
> capital gains on the total value of the sale.  Depending on state laws
> you may be able to write off the commision.
>
>
> lsbresh@gmail.com wrote:
>> I purchased raw land in January 2005, and sold it in April 2006. We did
>> some improvements (fencing etc). My question is do I pay Capital Gains
>> Tax (Which I estimate to be 15%) on my cost basis less expenses and
>> minus Real Estate Commission or not ?
>> Thanks in advance for any input..
>> S
>
 Cost Basis = Amount to buy.
Adjusted Cost Basis= Sales Price minus (expenses & commission)
Pay Capital Gains Tax on ACB minus CB if land appreciated.
If land did not appreciate you have a loss.