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I ran out of space, property is located in Oregon
You need to first determine the gain on the sale of the property. That will be the net sale proceeds less the basis of the property. The initial basis of a gift is the basis in the hands of the individual or entity that gave the gift if the property is sold at a gain. If the property is sold at a loss, the basis to the seller is the lower of the donor's basis or the fair market value of the property at the date of the gilt. To that amount you add any improvements to arrive at the adjusted basis.
So, you will need to determine what the basis of the property was in the hands of the individual or entity who gave the gift to you (normally cost plus improvements). Also, if the property was an inheritance as opposed to a gift, the basis would be the fair market value of the property on the date the individual died.
The federal capital gains tax will be the gain netted with other gains and losses for the year multiplied by the capital gains tax rate which is $0 to 15% for lower income taxpayers and 20% for higher income taxpayers.
TurboTax will of course calculate the tax for you when you enter your tax data into the program. You enter your investment property sale in the Wages and Income section of TurboTax, then Investment Income, then Stocks, Cryptocurrency, Mutual Funds, Bonds, Other. Choose Other as the investment type and then Land (other investment purpose).
You will need to file a separate return for Oregon to apply the gain to that state. You may get a credit on your Washington state return for any tax paid to Oregon so you need to look for that when you complete the Washington capital gains return.
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