If I buy land and sell part of it do I have to pay taxes on it?

[kyarra502]

I sold my house after 10yrs. And will be buying 33 acres of land.Then shortly after sell 10 acres of it to an uncle. after that I will start building a house. I will be selling the land to him just a little cheaper per acre then im paying per acre. Do I have to worry about any taxes?

[DianeW]

If you have your cost basis for the portion of the land you are selling to your Uncle, and the selling price is less than your purchase price there will be nothing to report on the sale of the land because it is sold at a loss to a relative.

You do not have to worry about any taxes, however if you receive a tax reporting document, then you will enter it on your tax return as though there is no gain or loss (selling price and cost would be the same).

If there should be a change and a gain results on the sale, after all, then it is a taxable gain and in this scenario you would have to worry about the taxes.