sale of land

[gman]

that was used in a farming/ranching operation would be subject to income tax and not capital gains tax if used in business operation??? Is this correct

[DaveO]

The sale would be reported on Form 4797. As long as no land clearing and/or conservation expense was deducted it should be pure capital gain.

[Jiggers]

Farm land

If there was a fence on the land the land that was depreciated, you will have to allocate part of the sale towards that and recapture the depreciation.

Same applies to barns and other land improvements.

The balance would be capital gain property.

[OtisMozzetti]

net 1131 loss

If there is a net 1231 loss on the sale of the land combined with other transactions, that loss is deducted as an ordinary loss not subject to $3000/$1500 per year limit! However, when net 1231 capital gains come along during some future year, there is a lookback to see what net 1231 losses have been deducted during the past 5 years.

[thomtax]

If there was a fence on the land the land that was depreciated, you will have to allocate part of the sale towards that and recapture the depreciation.

Same applies to barns and other land improvements.

The balance would be capital gain property.

Not trying to pick on you, but I didn't know land could be depreciated. Did you mean the fence that was depreciated?

LT

[Jiggers]

Typo & didn't re-read!

Not trying to pick on you, but I didn't know land could be depreciated. Did you mean the fence that was depreciated?

LT

I meant the fence and other improvements such as a cattleguard, water well, etc.

I in a hurry get some time. Whoa.......... It shoud say "I get in a hurry sometime!"