The capital gains taxes you need to pay depends on three factors: a) appreciation in your property's value; b) income tax bracket; and c) homeownership tenure. There are numerous ways that you can reduce or avoid capital gains taxes on a land sale.The best option depends on what your goals are for the money. There can be state capital gains taxes as well. In Minnesota, capital gains are taxed as ordinary income at the current applicable rates. You will need to fill out the following Federal tax forms: Form 8949 To report the sale and calculate capital gains or losses. You held the property for more than a year, so your gain is considered longterm. Capital gains tax is the tax you owe on your capital gains (profit) from the sale of a capital asset or investment just as a home. When you sell your property, you'll be subject to various tax implications. Capital gains tax is a levy on profit made from selling an asset, whether it be a stock, a real estate holding, or a business interest.
