Capital Gains tax

[rpt]

What is the name of your state (only U.S. law)? Ohio

Can capital gains tax on the sale of farm land in Ohio be spread out over a number of years instead of being all due in the year of the sale?

I seem to remember a friend telling me they did that back in the 1990's. Could the law have changed since then?

 

[davew128]

What is the name of your state (only U.S. law)? Ohio

Can capital gains tax on the sale of farm land in Ohio be spread out over a number of years instead of being all due in the year of the sale?

I seem to remember a friend telling me they did that back in the 1990's. Could the law have changed since then?

He couldn't do it back then either. You're taxed in the year you receive the money.

 

[tranquility]

While dave128 is correct in the second sentence, I question the first. There are such things called installment sales where a single property is sold over time.

 

[davew128]

While dave128 is correct in the second sentence, I question the first. There are such things called installment sales where a single property is sold over time.

Which means both statements are correct.

 

[LdiJ]

I think that the OP is talking about income averaging. That has been gone for quite a while, but I cannot remember if it was still around in any part of the 90's or not.

 

[FlyingRon]

Is there a baseline for "capitol gains" that are not considered, like with the sale of your primary house? Sounds like it is a business sale...

It's CAPITAL gain.

There is a capital gains exclusion for your primary residence if you meet the requirements ($250,000 per person). The other commonly used method for business/investment properties is to roll the proceeds into a like-kind purchanse (1033 exchange).

The suggestion for installment sale is a good one:
Tax Topics - Topic 705 Installment Sales

 

[tranquility]

Which means both statements are correct.

To the question:

Can capital gains tax on the sale of farm land in Ohio be spread out over a number of years instead of being all due in the year of the sale?

The answer is yes. Not:

He couldn't do it back then either.

 

[davew128]

To the question:Can capital gains tax on the sale of farm land in Ohio be spread out over a number of years instead of being all due in the year of the sale?
The answer is yes. Not:

Are you having a senior moment? You're ASSUMING he's referring to an installment sale when no such indication was given. If you get the entire amount at the time of sale, its taxable that year. As LdiJ points out, the question is geared towards income averaging.

 

[tranquility]

Who's assuming now?

There was a question. You made an assumption which could have been what the OP was thinking about and answered the question. Within that assumption, your answer was correct. I looked at the OP's problem and gave a possible solution. By answering only your assumption, you did not help the OP and would tend to have the OP think there was no solution to the problem.

Senior moment? No, just a guy trying to help. You?

 

[davew128]

My answer was correct on its face.