Hi, I'm in Florida, if I was to sell a piece of vacant land for $20k about how much in taxes should I expect to pay when I file my 1099 ? If anyone can give an idea.

[TomK2023]

There are two types of capital gains: long-term and short-term. Any asset held for less than a year is considered short term and is subject to a different capital gains structure, usually ordinary income.

Other sold assets will be taxed at long-term capital gains rates. The Federal rates are 0%, 15%, or 20%, depending on filing status and taxable income.

In Florida, you are only subject to Federal Capital Gains, which are typically lower than your ordinary income tax rate.   

[baij1]

Hi, 

Thanks for you response, it was helpful. It will be considered a long term and I'm 65 years old living on SSI. 

So I would guess that I would fall in the lowest tax bracket. I just wanted to have an idea of what and if I'll have to pay anything back at tax time, so I know what to expect.

Thanks.

[AmyC]

You would need to file a tax return to report the sold land plus your social security benefits.  Your gain from the sale of land would be the sales price minus what you paid for the land.

Social security benefits are taxed on the amount of your income over:

$0 if MFS and lived with spouse at any time

$25,000 single, HOH, QSS, MFS (didn't live with souse all year)

$32,000 MFJ

It could be that you file a return to show the sale and social security but have no taxable benefits.

This puts you in the 0% capital gains tax bracket meaning no income tax on the sale.

Overall, you would not have any tax to pay unless you have more income.

See Topic No. 409 Capital Gains and Losses - IRS & How much of my social security benefit may be taxed?