Capital Gains calculation

[bill123]

I am selling a property I have owned for 12 years (vacant land). After fees and such, I will make $25K on the deal. Over the past 12 years I have paid about $11K in property taxes.

Do property taxes figure in anywhere? Can I use them to lower my capital gains?

thanks

[jpg7n16]

I am selling a property I have owned for 12 years (vacant land). After fees and such, I will make $25K on the deal. Over the past 12 years I have paid about $11K in property taxes.

Do property taxes figure in anywhere? Can I use them to lower my capital gains?

thanks

Property taxes should have been deducted as paid throughout. So no, you likely cannot deduct them against the gains.


Also might wanna check out: Capital Gains, Losses/Sale of Home

From: Tax Topics - Topic 503 Deductible Taxes

To be deductible, the tax must be imposed on you and must have been paid during your tax year...

Deductible real estate taxes are generally any state, local, or foreign taxes on real property. They must be charged uniformly against all property in the jurisdiction and must be based on the assessed value. Many states and counties also impose local benefit taxes for improvements to property, such as assessments for streets, sidewalks, and sewer lines. These taxes cannot be deducted. However, you can increase the cost basis of your property by the amount of the assessment. Refer to Publication 551, Basis of Assets, for more information. Local benefits taxes are deductible if they are for maintenance or repair, or interest charges related to those benefits.

If a portion of your monthly mortgage payment goes into an escrow account, and periodically the lender pays your real estate taxes out of the account to the local government, do not deduct the amount paid into the escrow account. Only deduct the amount actually paid out of the escrow account during the year to the taxing authority.