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Johnjack
New Member

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

?
2 Replies
Hal_Al
Level 15

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

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.

Critter-3
Level 15

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

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. 

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