Message Font: Serif | Sans-Serif
No. of Recommendations: 0
We may sell some vacant land at a gain of $160K this year(LTCG). I am considering postponing the payment until 2002 since this year our income is high.

Question #1: If our earned income next year is $15K (married filing jointly) and we include the LTCG of $160K, how will the LTCG rates apply? Will we get the 8% rate on part of it up to total income of $43850 (or whatever it is next year) and then 20% on the remainder?

Question #2: If I do take payment Jan 1, 2001, how much imputed interest will I have to show if the land sale actually happens on, say, Nov 1, 2001? Can I calculate it as 2 months at .5% per month (simple interest) on the total selling price?

Thanks in advance
Print the post  


In accordance with IRS Circular 230, you cannot use the contents of any post on The Motley Fool's message boards to avoid tax-related penalties under the Internal Revenue Code or applicable state or local tax law provisions.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.