schedule D

[gman]

Couple sells 5 acres of their 25 acre farm. This business land sale would go on sch D...Correct?? and subject to capital gains tax of possibly zero...

[Jiggers]

Depends.....

Couple sells 5 acres of their 25 acre farm. This business land sale would go on sch D...Correct?? and subject to capital gains tax of possibly zero...

Report on 4797.

Any depreciation taken on fences/pens, etc. on the 5 acres sold? Section 1245 recapture.

Any soil, water, or land clearing expenses deducted on the 5 acres sold? Section 1252 recapture.

[dyne]

I have found that often the tax rate on the gain from the sale of land is NOT zero% because the
total income of the client including the gain on the sale of land is too high.