capital gains on property sale

[katfish]

I have some land for sale, 25% down, I'll finance the rest. Does anyone know
how the capital gains would be paid on this? thanks.

 

[RE2Boys]

See IRS Publication 537

http://www.irs.gov/pub/irs-pdf/p537.pdf

Essentially you can do it two ways. Report entire gain in the year of sale or report a portion of the gain each year as you receive the proceeds from the sale using Form 6252. Good luck.

RE2Boys

 

[Red-y]

This is a situation where paying the extra few $$ for TurboTax Premiere really pays off. I sold some raw land in 2005 on a 10 year RE contract. I opted to spread the reporting of the capital gains over the long run since my marginal tax rate is due to drop dramatically when I retire next year, making me eligible for the 5% cap. gains rate.

I just plugged all the relevant numbers into TurboTax and it did the calculations and spit out the appropriate forms.

 

[katfish]

Thanks for the info!