Sell vacant land

[camaro88lover]

We bought a piece of vacant land in November of 2016 thinking we were going to build on it. We paid $76,000. We've decided to not build on it and move out of state, so we have sold the property as of today (12/21/2017). We sold it for what we bought it for, which was $76,000. I'm so confused about how we'll be taxed on the sale. There was a loan that we had to pay as well, so we're not getting $76,000 from the sale. We're getting about $16,000 after closing costs. But we didn't sell the land for a profit since we sold it for what we bought it for. How will the $16,000 be taxed? Also - to make it more challenging, both myself and my fiance are on the paperwork, but we are not married.  So - should we split the $16,000 when reporting?  Help!

[SweetieJean · Accepted solution]

The only numbers that matter are the $76,000 you paid for it, and the $76,000 you sold it for.  So there is no tax due. The loan is irrelevant.

Legally, you are each entitled to 50% of the $16,000.