Capital Gains - What to Do?

Forum|Forum|3 years ago
April 12, 2023
1 reply
0 views

We own a home on 10 acres of land and purchased the 10 acres next to us 3 years ago.

We decided to sell the 10 acres we purchased 3 years ago.

My husband has been on long term disability and is going through the Social Security Administration for disability benefits.

Do we still have to pay a capital gains tax if we use the money to pay down our mortgage and then refinance?

I am concerned about our ability to continue paying our mortgage with just my salary. We don't have much in savings (<$10k). We do not have car payments (they are paid in full).

Other considerations?

Vanessa A

Yes, the sale of the land is a taxable event. There is not a special provision for aging, disability, financial hardships or anything really. The land would not meet the home sale exclusion since it was not your main home being sold.

The sale would be subject to capital gains tax rates.

**Say "Thanks" by clicking the thumb icon in a post**Mark the post that answers your question by clicking on "Mark as Best Answer"