Capital Gains from sell of property

What is the name of your state? NC

My mother just sold part of her land. Part will be paid in cash, the other by check. She has owned the property for 8 years. It was part of her primary residence until she sold this part. How can she avoid high capital gains tax?

Can she show improvements such as fences and barns to reduce the tax? Any help will be greatly appreciated.

Thank you.

[abezon]

Yes, fences & barns can be added to the basis to reduce her profit, thus reducing her tax. She will have to split the original purchase price into the amount used to buy the land she sold & the amount used to buy the land/house she kept. The purchase appraisal may be helpful here. They often slant the purchase price heavily towards the land. This would allow her to use more of the original purchase price as basis for the land she just sold.

Compare the purchase appraisal with the appraisal used for assessment of property tax and use the most favorable.