There is almost no private land in this area. So, it was a super-shock to see the price of vacant land triple in one year.
Last I knew if you sell your home and purchase or build another with-in 24 months you pay no tax on the sale, you simply move your "bases" forward.Personally, I don't like to see land prices climb. If I sold and bought a new home and/or land, this just means I pay more taxes than I would staying here. When I die, the kids may enjoy until this spikes my net worth, and death taxes get involved, and my family once again pays more taxes.
So in effect, price increases aren't worth the paper they are written on.
It's funny how the land prices change. When my grandpa passed on in 1984 his farm was valued at $2100/acre. When Grandma passed in 2012 (10 years and one week ago) it was 7100/acre. When my mom and uncles sold it last December it brought $9100. The capital gains are going to be insane...Land prices are shocking. We had an appraisal on our ranch last summer and I couldn't believe the estimate. The only time the high land prices benefits a person is like in our case. We own a large property and the kids don't want it. So when we sell this place we'll scale down to maybe just 20 - 40 acres and build a modest house and bank the difference.
I believe there's a capital gains tax exemption on the sale of some properties. The last several properties that I've sold didn't have a capital gains tax liability. It pays to have a good tax accountant when selling real estate.It's funny how the land prices change. When my grandpa passed on in 1984 his farm was valued at $2100/acre. When Grandma passed in 2012 (10 years and one week ago) it was 7100/acre. When my mom and uncles sold it last December it brought $9100. The capital gains are going to be insane...
My uncle is the executor and he's pretty finance savvy. (He is an MBA.) This is how he explained it to me: The land is actually in two trusts dating to 1984 and 2012. The portion in the 1984 trust will have a lot of capital gains. The 2012 portion will have quite a bit less.I believe there's a capital gains tax exemption on the sale of some properties. The last several properties that I've sold didn't have a capital gains tax liability. It pays to have a good tax accountant when selling real estate.
That is true. And that is why its important to buy a property where you can take advantage of agricultural and/or timber exemptions on your land. I think in my case the county separates out the house and 1 acre and tax it one way and the rest of the property is taxed very low as agricultural (grazing) and timber land. Even the smallest ranch around here is valued in the millions, nobody but the very rich could afford property taxes like that.It's the property tax that is the problem. Here, even if you don't sell, your property tax is based on the sale value of whatever sold in your neighborhood the prior year.
If your neighbor's house seĺls for double its previous value, your house will also double in value and you pay property tax accordingly.
Most locations in Alaska there is NO property tax on your personal residence after age 60 or 65 (generally capped at first $300,000.00 of assessed value)There is also I believe a one time exemption once you turn 65 years of age.
Not sure what a house goes for in Alaska, but in California that 300,000 exemption means you don't pay tax on your closet.That sure is a low cap!
That's how our new property is. It's all zoned timber, and we pulled out one acre to build a house on. Property taxes will be a lot lower.That is true. And that is why its important to buy a property where you can take advantage of agricultural and/or timber exemptions on your land. I think in my case the county separates out the house and 1 acre and tax it one way and the rest of the property is taxed very low as agricultural (grazing) and timber land. Even the smallest ranch around here is valued in the millions, nobody but the very rich could afford property taxes like that.
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