What is the name of your state?Washington. Conderation for the deed a settlement agreement based on behavior. Punitive damages i believe.I sold this property is the capital gains based on selling price or on the selling price minus the value of land and selling costs. Tax on 50000 ?or tax 19000? 5000 selling costs ,26000value at time of settlement snd deed to me ,capital gains tax. On1 9000 correct? Of capital gains on entire 50000 ?
Capital gains are calculated as follows:
Purchase price plus major improvements = Basis
Selling price minus selling expenses = Proceeds
Proceeds minus basis = Capital gain or loss
Based on the information you have given, plus your wording, it may be difficult to determine your basis.
Try explaining the situation again, using full sentences and fully explaining the situation. If you don't understand the settlement that you made, see a tax pro with all documentation in hand.