Land sale, timber, Soc Sec

Forum|Forum|3 years ago
February 18, 2023
1 reply
0 views

Hello. My ex and i sold 14 thou in timber 15 years ago. Not sure if we paid taxes or not at that time. Now I want to sell my interest in land to him and have these questions.

My basis is 35. Sale to him will be for 70. I have paid 70 for the land with taxes and mortgage, but I I'm still seen as receiving a profit though I am not recouping full cost.

My income is only from Soc Sec retirement. I think since the "profit" from sale to my ex is less than 40, I will not owe Capitol Gains. I'm not sure though because if I add the profit to what I receive from Soc Sec, then the total is about 56.

Also, I think we must have paid tax on that timber sale 15 years ago, but if we did not, then is it calculated ate time of land sale when he sells the land? That might even involve penalties, but we must have paid it.

Thanks.

Not A Product Question

Mike9241

if you are not sure of what happened 15 years ago, how would we know? a guess would be that you sold the timber rights only. you must still own the land otherwise you could not sell it. what your basis is in the land is unknown but you need it to determine gain or loss. don't know how you know our basis is $35 but if it is and you sell for$70 you have a $35 capital gain. how the taxes and mortgage fit into this is also unknown but perhaps they have no effect on your basis. maybe the taxes and interest should have been deducted on prior returns. your best bet is to consult with a real estate lawyer who can research what took place and give you the best advice. they can also review whatever documentation you have.