Capital gains on the sale of vacant land are taxable.
If you have held the land for one year or less before selling it, the capital gains are short-term and are taxed at the ordinary income rate.
If you have held the land for more than one year, they are long term-capital gains and are taxed at a more favorable rate, generally 15%.
If you owe capital gain taxes, you should consider paying estimated taxes during the year to avoid the penalty for underpayment of estimated taxes.
Please read this TurboTax Help topic for more information.
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