Expert: Matt Heisler - 2/7/2008

Question
Hi Matt,  Currently own vacant land (over 10yrs) which my husband & I were going to build a house on.  Now considering selling to help with debt and to purchase new primary residence.  Would need to sell land and current home combing money from both sales to 1)pay off debt 2)down payment on new primary home.  Would there be a cap gain on the vacant land.

Answer
Pamela:

This is a tax question, not really a real estate question.  There are many ways to shelter gains, and without understanding your income/expense picture, I can't help you.  In general, there's aren't capital gains on property for the house you live in, but you're selling land and I suspect you would need to pay cap gains on that, but the cap gains would be waived when you sold your house.  But it's probably not that simple, that's why you need a real estate or tax attorney.

Good Luck-

matt