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rrobin832
Level 1

I sold land for $47,900 but after costs received $43,104.93. it cost me $30,000 for the land. is the gain $12,309?

$5,590.67 were closing costs,,,
2 Replies
ColeenD3
Expert Alumni

I sold land for $47,900 but after costs received $43,104.93. it cost me $30,000 for the land. is the gain $12,309?

It depends what you mean by costs. Your initial purchase price is the basis. If you take just these figures into account, your gain is $17,900.

 

You can add certain closing costs to this to increase the basis and reduce the gain. Not everything is deductible, just because you paid it at closing. Items below can reduce the sales price of the property. If you only used items from this list and they add up to $5,591, then that brings the gain to $12,309.

 

  • Title fees
  • real estate commissions
  • documentary stamps
  • credit report costs
  • costs of an abstract
  • transfer taxes
  • home inspection
  • flood certificate
  • attorney fees, etc.  

 

 

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rrobin832
Level 1

I sold land for $47,900 but after costs received $43,104.93. it cost me $30,000 for the land. is the gain $12,309?

Thanks for your immediate response. I couldn't find the answer anywhere. 

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