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Asked by: lpliskin
I’m thinking I will lose everything in a divorce because of Obama and the state of MN and of course my husband.
Ariaread on Dec 02, 2012
The value of the land upon the death of the previous subtracted from the amount you sell it for, remainder is capital gains and that is taxed at 20%.
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ninasgramma on Dec 02, 2012
You will not lose separate property in a property settlement in a divorce. Talk to an attorney about the consequences of selling separate property before your divorce.
As for taxes, if you choose to sell the land, any increase in value from the date of death of the decedent from whom you inherited is taxable as capital gain. Capital gain rates are currently at a maximum of 15%. Depending on your income, your filing status (e.g. if you will not be filing a joint return in 2013), and the impending changes to the tax rates, your rate may be higher or lower in 2013.
Bostonian In MO on Dec 02, 2012
If you inherited the land, it remains yours alone unless you quitclaimed a portion of it to your spouse or pledged it as security for a joint loan. A divorce won’t affect ownership of your sole and exclusive property. Consult with a local attorney to see what your and his rights to the property are.
The value of the land on the date of death of whomever you inherited it from is your basis. If you sell for more than that after taking the selling expenses into account, the difference is taxable as a long term capital gain.
The current long term capital gains tax rate is 15% at the federal level. If you are in a 15% bracket already, it drops to 0%. While that’s likely to increase for 2013, the likely worst case scenario is 25% or your marginal rate whichever is less. Most likely is 20% or your marginal rate, whichever is less. Remember, that’s only assessed on the GAIN, not the selling price.
States tax capital gains as ordinary income in virtually all cases. The top rate in MN is 7.85%. Your rate will probably be less.
No idea where the rant about Mr Obama comes from. He has no interest in your property and has no intention of taking it from you, nor has he even proposed anything so absurd.
Bobbie on Dec 02, 2012
Quit just thinking about all of this stuff and just make sure that you do have your own lawyer that you are paying working for and with your husband lawyer to make sure that keep what is already separate from the joint asset that your and your husband do own together for this purpose and time in your life.
Long term capital gains tax MIGHT end up being higher during the 2013 tax year and on into the future BUT at this time is really a unknown for this purpose.
Hope that you find the above enclosed information useful. 12/01/2012
tro on Dec 02, 2012
divorce or death?
if you and your husband are splitting and you get the land which you in turn sell, you have no gain or loss in the divorce
when you sell this depending on the value at the time you took full possession the profit you make will be taxable and it is Congress(not Obama) who determines the tax laws
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