ANSWERS: 2
  • It all depends on the state and what you are doing with the money after you recieve it in Michigan if it is invested in a certain amount of time you dont have to pay taxes.
  • Consult a CPA on this matter. You have several tax issues colliding on this one. Selling your principal residence provides you up to a $250,000 gain exclusion/$500,000 if married if you have indeed lived there during each of the past 5 years. But this gain exclusion is attached to the house and I am not aware of how it may or may not count toward a 100-acre land sale in connection with the house. And, as the previous answer referred to, you could potentially do what is called a 1031 exchange on the land you did not live on and defer the gain - but a CPA would need to look at all the details. For the amount of money that this sale will likely be for, it's worth your money to sideline a CPA and potentially an attorney in addition to your real estate agent.

Copyright 2023, Wired Ivy, LLC

Answerbag | Terms of Service | Privacy Policy