Short Term Capital Gains On Real Estate

[travise]

What is the name of your state? MONTANA
I just bought a house and fourteen acres this month. This spring i plan on subdeviding and selling off two or three lots. Since I am keeping my house and some of the land how will the sale of the land effect me.

How do i KNOW WHAT CAPITAL GAINS WILL BE CHARGED


thanks Travis

 

[seniorjudge]

Travis, to find out how this will affect you, you should ask your tax preparer.

(Stand by for someone with tax knowledge who may give you general info.)

 

[travise]

thanks SJ


I dont plan on using a tax person this year. I am going to try turbo tax




Travis

 

[abezon]

The you will surely screw it up, as Turbo Tax's "interview process" is no substitute for knowing what you're doing. In fact, tax software is a great way to go wrong with confidence.

On the other hand, you could pay someone to advise you on the tax implications of the short plat and call it a cost of sale or add it to basis. "What's basis?" you ask? The reason you should hire someone who knows what they're doing!

 

[seniorjudge]

The you will surely screw it up, as Turbo Tax's "interview process" is no substitute for knowing what you're doing. In fact, tax software is a great way to go wrong with confidence.

On the other hand, you could pay someone to advise you on the tax implications of the short plat and call it a cost of sale or add it to basis. "What's basis?" you ask? The reason you should hire someone who knows what they're doing!

In fact, tax software is a great way to go wrong with confidence.

Plan on having this quote stolen from you by me.

 

[abezon]

Feel free -- I stole it myself & adapt it to the situation. The original is "Logic: a great way to go wrong with confidence."

Works equally well for Quicken, a program that helps people who know nothing about accounting or bookkeeping to turn their records into a spaghetti mess that costs twice as much to straighten out as it would have cost to hire a pro in the first place. GIGO!