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mdenise_johnson
New Member

I sold land and have long term capital gains. The sale of the land was 3/16. When are those taxes due, if I didn't owe any taxes last year?

Just to make sure..I just pay capital gains and not income tax on that sale, right?
6 Replies
Hal_Al
Level 15

I sold land and have long term capital gains. The sale of the land was 3/16. When are those taxes due, if I didn't owe any taxes last year?

What does "The sale of the land was 3/16" mean?
mdenise_johnson
New Member

I sold land and have long term capital gains. The sale of the land was 3/16. When are those taxes due, if I didn't owe any taxes last year?

Sold March 24, 2016.
Hal_Al
Level 15

I sold land and have long term capital gains. The sale of the land was 3/16. When are those taxes due, if I didn't owe any taxes last year?

The capital gain from the sale will be considered long term if it was purchased before 3-24-15 or it was a gift or was inherited.
mdenise_johnson
New Member

I sold land and have long term capital gains. The sale of the land was 3/16. When are those taxes due, if I didn't owe any taxes last year?

It is long term, it was bought in 1967.  Does it matter that it was in a trust?
Hal_Al
Level 15

I sold land and have long term capital gains. The sale of the land was 3/16. When are those taxes due, if I didn't owe any taxes last year?

"Was" in a trust, no. The trust "distributed" the property to you and you are the tax "tax entity' that sold it and must report the sale.

If the trust sold it and distributed the $ to you, maybe.
Hal_Al
Level 15

I sold land and have long term capital gains. The sale of the land was 3/16. When are those taxes due, if I didn't owe any taxes last year?

You don't need to do anything until you file your 2016 tax return in early 2017. Yes, you just pay capital gains tax. But, capital gains tax is part of your income tax. Long term capital gains are just taxed at a lower rate than "ordinary income". For many people that rate is 0% (people who didn't owe any taxes probably qualify for 0%)

That said, not owing any taxes last year doesn't exempt you from advance payments. But having a zero tax liability (line 56 of form 1040 or line 39 of form 1040A) in 2015 does. 

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