The sale of the land goes on Part I of the 4797. It gets combined on line 13 of your Form 1040 as a capital asset.Whether you are flipping houses, wholesaling, or getting a real estate license, check out the 12 math formulas all agents should know. So if I mint a property for 10,000 UPX, my base markup will be 11,500, then I round up to the nearest 99, so I'll list it for 11,599. When you sell a stock, you owe taxes on the difference between what you paid for the stock and how much you got for the sale. As always, your capital gain from selling the house is your sale price less the tax basis of the property. This exemption is automatically applied to the property when a building permit is taken out to complete the home improvement. Jeff Cook Offers; Immediate Offer Program. Sell This House With Our Immediate Offer Program. The capitalization rate is the rate of return on a real estate investment property based on the income that the property is expected to generate.