Capital Gains Tax Guidance

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Summary

Capital gains from selling real estate in Mississippi are taxed as income. Long-term gains, from property held over a year, are taxed at a lower rate. Selling a property bought for $10,000 at $150,000 results in a $140,000 gain. The tax rate depends on your income bracket. Consult a tax professional for detailed advice.

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I’m selling my property on a land contract I have questions about the capital gains tax and how that works
Hello ****, the capital gains tax can be complex. Could you please tell me where your property is located? This will help me provide information relevant to your situation.
Mississippi
Hello ****, in Mississippi:
- Capital gains from the sale of real estate are taxed as income.
- If you've owned the property for more than a year, it's considered a long-term gain, taxed at a lower rate.
- You may qualify for exceptions if it's your primary residence.
Please consult with a tax professional for detailed advice.
My biggest concern is that I bought the property from my dad for $*,* and I’m selling it for $*,*
Hello ****, given the circumstances:
- The capital gains tax would be on the difference between the sale price and your purchase price.
- Given your figures, this would be $*,*.
- The rate depends on your income bracket.
Please consult a tax professional for detailed advice.