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Employee

Question

What is the rate for Capital Gains tax in South Carolina for the sale of land?

Forum|Forum|6 years ago
June 1, 2019
3 replies
0 views

How can I avoid paying Capital Gains tax on land that I sold?

Employee

Since you already sold the land, there is no way to avoid capital gains tax. The top rate for SC state taxes is 7%.

https://ballotpedia.org/Tax_policy_in_South_Carolina

How can I avoid capital gains on land I am about to sell?

Employee

@gokat1162 wrote:

How can I avoid capital gains on land I am about to sell?

Assuming this property was held for investment and not for personal use -

The only way to postpone the capital gains on land sale is if you do a like kind exchange for a similar investment property. If that is not feasible for you then you will have to report the gains on the sale on your tax return in the year of the sale and pay the capital gains tax.

Go to this IRS website for section 1031 like kind exchanges - https://www.irs.gov/businesses/small-businesses-self-employed/like-kind-exchanges-real-estate-tax-tips

Also see this website for like-kind exchange rules - https://www.investopedia.com/financial-edge/0110/10-things-to-know-about-1031-exchanges.aspx

We purchased land with the intent to build our primary home, but building costs are currently too high. So now we are planning to sell the land and buy a primary home with the proceeds. Is there anyway in this scenario that we are able to avoid paying capital gains tax?

@Elpresidente8 - sell it for no more than you paid for it? 🤔 🤔

or.... do you have any stocks / bonds that are currently worth less than you paid for them? sell the securities at a loss and net that against the gain on the land.....