Just sold a piece of property in Ga. We are Georgia residents, can someone give me some guidance about what taxes need to be paid, federal, state, capital gains and how soon, this quarter or in next’s years tax return.
Couple of assumptions for my response:
- This is NOT your primary residence
- This is strictly raw land
- You have held the property more than a year
- You are not going to turn around and buy another piece of property
Your capital gain is going to be the difference between the purchase price and your sale price. You can also adjust the acquisition and disposal basis for closing costs using IRS Pub 551. Once you do that you will have your actual Net Profit.
You need to pay capital gains tax during the quarter in which it was realized. The next quarterly payments are due April 18, 2023. You can use IRS Form 1040ES and GA Form 500ES to make the quarterly payment.
Disclaimer: This is just an opinion, not advice.
correct, not primary residence, just property (we did put a barn on it, but that is paid for), we have owned the property since 2018 and no we are not purchasing any land. We are using to pay off some debt and then part towards a downpayment towards a house when we find the one we want.
OK, because you owned the property for more than one year, You have a Long Term Capital gain or loss.
Your basis in the property is what you paid for the property plus the cost of improvements (barn). You sell the site for more or less than your basis.
You may receive form 1099-B or form 1099-S.
You report the sale on 1040 Schedule D and form 8949.
As was mentioned earlier, you may want to make an estimated payment to the IRS and to the taxing authorities in Georgia. Or increase your withholding for taxes.