topic One time capital gain from sale of a lot in Deductions & credits

One time capital gain from sale of a lot

AlanTJones — Tue, 24 Feb 2026 07:09:45 GMT

We sold a lot with a profit from the purchase price from 2006.

How much tax will I owe?

original purchase $19,200.00 with a sale price of $135,000.00

Our combined adjusted income last year was approx. $40,000.00

Re: One time capital gain from sale of a lot

Bsch4477 — Fri, 11 Aug 2023 21:54:51 GMT

This calculator is for 2022 but will give you a ball park idea of your tax liability.

https://turbotax.intuit.com/tax-tools/calculators/taxcaster/

Re: One time capital gain from sale of a lot

Opus 17 — Sat, 12 Aug 2023 05:52:19 GMT

"We"/"Our".

[Edited: I have updated and corrected my calculation, I got it wrong the first time]

Assuming you are married filing jointly, you have a $27,700 standard deduction, and the 12% tax bracket stops at $89,000. That means that the first $116,000 of your income has a zero percent capital gains rate. With income of $40,000 and capital gains of $125,000 (total income of $165,000), that means that the capital gains tax on the land will be 15% of (165k minus 116k = $49,000) or $7350. Then there is the regular income tax (10% and 12%) on $13,000 of regular income (between the standard deduction of 27K and your income of 40K). So about $1300 of regular income tax and $7350 of long term capital gains tax.

Of course, that's a very crude estimate, and assumes facts that are not proven. The online calculators will give you a better estimate if you give them better details.

And of course, you may be able to reduce your gain by taking into account any real estate commission and some (but not all) closing costs. See publication 523 on page 8.

https://www.irs.gov/forms-pubs/about-publication-523

Re: One time capital gain from sale of a lot

NCperson — Sat, 12 Aug 2023 02:07:45 GMT

@AlanTJones - it's going to be around 15% for federal taxes.

use this website for 2023:

https://www.dinkytown.net/java/1040-tax-calculator.html

you can reduce the profit by any closing costs (e.g. the sales commission is always the big one)