capital gain tax

[nika9801]

What is the name of your state? Minnesota

my husband's parents are now both deceased. there is nearly one hundred acres left to all their children. one of the sons is wanting to buy out all of his siblings. about how much in capital gain tax would be taken from my husband's share? can one avoid the tax if one buys land or a house right away (roll over)?

[abezon]

There is no rollover available unless the land was used in business. How long has it been since his parents died? The owners only pay taxes on the gain since the parents died. The gain will be long term, so the maximum rate is 15% of the profits.

[nika9801]

his mother died about 15 years ago and his father about 5 or 5 1/2 years ago. So they pay tax on how much the property value between 5 years ago and value of it today or what?

[abezon]

They pay taxes on gains from after they became owners. If they inherited 1/2 from each parent, their basis is 50% of the value when mom died + 50% of the value when dad died. If they inherited from dad, their basis is the property value when dad died.

Your husband's total capital gain = (sales proceeds - basis - costs of sale/commission/taxes/etc) x his share of ownership.