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If I bought land in July of 2017 for $70,000 and sold it in August 2019 for $70,000, i made zero profit on it, am I still taxed on it even though there's zero profit
?
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August 5, 2020
5:42 PM
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Investors & landlords
No. Only the profit (capital gain) is taxable, not the sale amount. However, the sale must be reported on your tax return.
You may actually have a deductible capital loss, since it's unlikely that the cost basis (purchase price) and sale amount are exactly $70,000 considering the expenses of sale.
August 5, 2020
6:38 PM
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Investors & landlords
Don't forget there was probably expenses to purchase as well .... purchase price + cost to purchase + cost to sell = basis in property. Selling price - basis = gain/loss which must be reported on the return either way.
August 6, 2020
5:16 AM