topic Is it used for anything, such as grazing or growing crops? in Deductions & credits

If we had property in Kentucky and live in Ohio, do we have to pay taxes on this when we sell it? There is no house on it, just a very small property?

crussell12 — Thu, 06 Jun 2019 14:28:18 GMT

We sold the property for just what we put in it and just wanted to know what the tax rate would be or where this goes on the tax forms?

Is it used for anything, such as grazing or growing crops?

SweetieJean — Thu, 06 Jun 2019 14:28:20 GMT

Is it used for anything, such as grazing or growing crops?

You only have to pay income tax if you sell it at a profi...

Hal_Al — Thu, 06 Jun 2019 14:28:22 GMT

You only have to pay income tax if you sell it at a profit (capital gain). Depending on what the property was used for, you may be able to claim a capital loss . If the property is considered investment property (as most vacant land is) you can deduct the capital loss.

The sale goes on fedearl form 8949 and Schedule D. If you have no profit, it does not need to be reported to KY. If you do have a gain, you will have to file a KY return, but OH will give you a credit for any tax paid to OH