Tax Question-Please Help

What is the name of your state? NC


I have a question about taxes I hope someone can help me with.

My wife & I have a 2.7 acre lot worth around 30,000. If we sell this and put the proceeds into another piece of property, do we have to pay capital gains taxes on it? What if we only put half of the 30,000 into another property, and put the other half into savings?

One more question: If my father-in-law gives us $20,000 toward a home, do we have to pay tax on that gift?

Any help will be greatly appreciated.

Thank you,

Michael

MY WIFE & I HAVE A 2.7 ACRE LOT WORTH AROUND 30,000. IF WE SELL THIS AND PUT THE PROCEEDS INTO ANOTHER PIECE OF PROPERTY, DO WE HAVE TO PAY CAPITAL GAINS TAXES ON IT?

This is fairly complex. Here are the IRS Rules that apply to you:

Like-kind exchanges. If you trade business or investment property for other business or investment property of a like kind, you do not pay tax on any gain or deduct any loss until you sell or dispose of the property you receive. To be nontaxable, a trade must meet all six of the following conditions.

1) The property must be business or investment property. You must hold both the property you trade and the property you receive for productive use in your trade or business or for investment. Neither property may be property used for personal purposes, such as your home or family car.

2) The property must not be held primarily for sale.

4) There must be a trade of like property. The trade of real estate for real estate is a trade of like property.

5) The property to be received must be identified within 45 days after the date you transfer the property given up in the trade.

6) The property to be received must be received by the earlier of:
a) The 180th day after the date on which you transfer the property given up in the trade, or
b) The due date, including extensions, for your tax return for the year in which the transfer of the property given up occurs.


WHAT IF WE ONLY PUT HALF OF THE 30,000 INTO ANOTHER PROPERTY, AND PUT THE OTHER HALF INTO SAVINGS?

Partially nontaxable exchange. If you receive cash or unlike property in addition to like property, and the above six conditions are met, you have a partially nontaxable trade. You are taxed on any gain you realize, but only up to the amount of the cash and the fair market value of the unlike property you receive. You cannot deduct a loss. In the example you gave, your capital gain would be taxed up to $30,000.


ONE MORE QUESTION: IF MY FATHER-IN-LAW GIVES US $20,000 TOWARD A HOME, DO WE HAVE TO PAY TAX ON THAT GIFT?
No you do not. In the first place there is no income tax on a gift. Also, the person who gives the gift would have to pay any gift tax. However, in this case, since the gift would be given to you and your spouse, there would be a $22,000 annual exclusion applicable, so the entire $20,000 would be excludible, and your father-in-law would not even have to file a gift tax return.

Thank you very much for your help.