Capital Gains on Farmland

Q: A 93 year old widow is planning to sell part of her farm land.
The land she is selling is not part of her primary residence,
but a separate parcel of land. It was purchased by her family
years and years ago and she has had it in her family her entire
life. If she sells this property, will she have to pay the 8% capital
gains tax?

She plans to sell the property for $150K.

A: She will owe capital gains tax based on the difference between what she sells it for and her cost basis. The capital gains rate will depend on her income level but can be up to 15%.

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