My wife was given a piece of property in roughly 06. The property has set vacant since then. The question is, what are the tax consequences if she decides to sell now?

[Vanessa · Accepted solution]

If she sells the property for a profit, she will have taxable reportable income. How much it affects your taxes will depend on the amount it is sold for.  The higher the profit, the more she will pay in taxes, plus it will raise your overall income possibly having all of your income taxed at a higher rate than it is currently taxed at since it will increase your AGI.