Arizona. I purchased a parcel of vacant land in June 2006 and then sold it in April 2007. My profit on the sale of the land was $30,000. I paid a realtor $4000 to find the buyer. I have two questions;
1) Do I subtract the $4000 fee from the $30000 before calculating the capital gains tax?
2) I've now used most of the $26,000 to remodel the home I've lived in for 20 years. I remodeled it for the purpose of selling whcih I intend to do soon. Can I use this reinvestment of my profit to reduce the tax I have to pay on the capital gains?
1) Do I subtract the $4000 fee from the $30000 before calculating the capital gains tax?
2) I've now used most of the $26,000 to remodel the home I've lived in for 20 years. I remodeled it for the purpose of selling whcih I intend to do soon. Can I use this reinvestment of my profit to reduce the tax I have to pay on the capital gains?