for $6000.00 its my only income for this year, when I pay income tax on this will I be able to get a refund for the nontaxable portion? Would I have to pay social security on this? Single non head of household. Thanks for any info.
snipped-for-privacy@yahoo.com posted:
If this is truly your only income -- with no salary, no interest, no unemployment or other benefits -- then you won't owe any tax. Anyone under 65 doesn't even need to file a return if Gross Income was less than $8200 in 2005, and that will be indexed higher for 2006. (Over 65, no return necessary if gross income less than $9450 in 2005.) If you actually sold the property for a total of $6,000, then there's no need to file. If, on the other hand, you sold it for more -- and you've deducted your _cost basis_ -- then you may need to file, using Schedule D to show your cost vs. the Sales Proceeds, to reduce your _profit_ to $6,000. Bill
You can get a refund only if you paid something in through withholding or estimated taxes. In your case there would be nothing to refund.
No.
If this sale was your only source of income for the year and you aren't a dependent, you'll have zero tax due even if you had zero basis in the property. See IRS Publications 550 and 551 fo rinformation on calculating your capital gain.
-- Phil Marti Clarksburg, MD
If your only income for the year is the gain from selling land, the gain is the difference between sales price of 6000 and cost basis to you. You will not have any income tax nor any need to file a tax return. So since you do not file you do not get a refund of anything. __ Art Kamlet ArtKamlet @ AOL.com Columbus OH K2PZH
You will not even have to file a federal tax return this year. But if you receive a form 1099S, you might want to file. It would go on schedule D with the sales price minus the purchase price. Your tax would be -0-. I do not know about your state tax. Missy Doyle
Is the $6000 the GROSS sales price or the capital gain? If that is your only income, other than SS benefits, you likely do not have any requirement to file or pay tax. If you have not paid withholding or estimated tax during the year, you have no claim for a refund. This is not "earned income". Since this is capital gain (and not earned income), there are no employment taxes due.
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