AboutHelen P. O`Planick, EA Expertise I am a tax professional, with experience in individual taxation. I would prefer not to answer questions about non-resident aliens or corporate taxation. Please do not ask me state related questions, unless the state is Pennsylvania. There are 42 taxing states and 42 TOTALLY different sets of state tax law.
Experience I have been preparing tax returns almost all my life. I have been in professional practice for 25 years and I am enrolled to practice before the Internal Revenue Service.
Organizations National Association of Enrolled Agents
Publications I am a prior Money Magazine Tax Test taker and have been quoted extensively in all media including monthly periodicals and books by tax authorities.
Question I have just been quick deeded two lots in Bend, Oregon worth about $85,000.00 each.
-Do I need to record them in any way on my taxes?
-Do I need to hold onto them for any specific length of time before selling them in order to avoid 'land speculation taxes'?
-Would it be wiser to sell one lot now and wait for another tax year to sell the second?
- Also, from the proceeds for the sale I want to give much of it to my two brothers. Will I be able to give $10,000.00 to each of them each year for 4 years without incuring any penalties?
Answer When you received the gift, you also received the holding period. So if the person that gave them to you had them over a year, you are deemed to have owned them for over a year. HOWEVER, your basis is NOT 85,000 each, it is whatever the person paid for them when they purchased them.
As for gifting the money, you can gift whatever you want to whomever you want. If the amount is over 12K per year per person, you will have to file a gift tax return.
As for "land speculation taxes" this is not a federal issue, so you may have to check locally.
