@Boomhauser wrote:
Thank you @Opus 17 , you're a true Champ!
Regarding property taxes in my country, we don't have crazy property taxes like in the US.
I only pay to our local county a small tax fee once a year which can be as low as $200, so I'm not worry about it.
I also agree about being audited, it's a small probability, but I want to be prepared for it.
I also know that many people in my position wouldn't even report sale like that to the IRS, but not me, I want to sleep well at night.
I also have a few acres of land in my country, which I received from my father in the 80's. The basis in that land is almost zero, but now it's worth something. Are there same rules for sale of land? There is not much improvement you can do to a land, unless you build a house on it or some kind of structure. Your thoughts? Thank you.
Yes, the rules for unimproved land are the same. "Property" is almost anything you can own, including personal property like clothes and books; intellectual property like copyrights and patents, and really, anything you can claim ownership of. "Real property" means land and any structure that is permanently attached to the land. The rules for calculating adjusted basis and capital gains on real property are the same whether or not there is a structure built on it.
Improvements to land can include the cost of installing public services (such as water, sewer and electricity) and the cost of surveying the land and preparing legal documents to subdivide it, if you were example planning to divide the lots and sell them to builders.
