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Sold property and need to know if I have to pay taxes on profit

Sent to Tax Experts December 14 12:28 AM

I sold property in Oct. 2005 that was a gift to me in 1999. I did take out a loan on this property that was settled upon sale. Sold for 65,000 and got a check after all was paid for 39,900. There was a mobile home on property that I was living in. It was not in my name and it was removed upon sale of this property. Will I have to pay a tax on this sale when I file my tax forms. If it helps I done all clearing of land and getting it ready for mobile home (driveway, septic, etc. approx cost was 7500.00) This property is located in Catoosa County, Georgia

Customer (name blocked for privacy)
Status:  Closed   Value: $15
Answer
December 14 9:45 AM (9 hours and 16 minutes and 34 seconds later)
         
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Randall Terry -- Certified Public Accountant (CPA) -- 100% Positive Feedback on 57 Tax Accepts
16 years experience with individual & small business taxes.
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December 14 4:48 PM (7 hours and 3 minutes and 24 seconds later)
         
My Grandfather gave me the property as a gift. It was given to my grandparents as a gift I think around 1960 by my great grandparents. I'm not sure how much my great grandparents paid for it. Don't even know when they bought it.
Customer (name blocked for privacy)
Answer
December 14 8:31 PM (3 hours and 42 minutes and 33 seconds later)
         
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The IRS is going to assume a zero (0) basis, unless you can prove otherwise.

If that is the case you would have a $7,500 basis and your capital gain would be $57,500, with your tax being a maximum of $8,625 (57,500 times 15%).
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Randall Terry -- Certified Public Accountant (CPA) -- 100% Positive Feedback on 57 Tax Accepts
16 years experience with individual & small business taxes.
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