Posted by David Krulac on April 30, 2000 at 20:21:36:
i’m not an expert on farms, so can’t touch that one. your personal residence sale can exclude the first $250,000 if single and $500,000 if married, its the best deal going with the IRS as far as I’m concerned.
You didn’t mention what kind of gain you have?
David Krulac
Capital gains - Posted by Bill Kothe
Posted by Bill Kothe on April 29, 2000 at 23:36:36:
4-29-00
Hello: Here is my problem. I am living on a 59 acre place that I am putting up for sale. It is zoned APU or agricultural preservation unit. It has been my principal residence for 15 years. It has not been farmed, other than getting some proceeds from Uncle Sam not to grow corn, less than $1000 a year. It is in a rapidly growing area that is being subdivided and big palacial mansions abound. Before I sit down with a CPA or an attorney, can anyone give me an idea if my place qualifies for the capital gains exclusion on a principal residense or will this be a farm sale? We use some of the land to grow our own hay for our horses,(5) but we don’t sell any of it and don’t grow any kind of agricultural products. There is an old dairy barn that has had all the dairy equipment removed from it about 10 years ago and several other outbuildings in poor condition. No animals are raised such as hogs, cattle, sheep etc. Just our private horses. We don’t board horses nor have we ever been in the business of breeding horses. No showing, just our own pleasure. Any enlightenment about this would be real helpful. I have used Schedule F on my Federal taxes for the reporting of the government income. Thank you. Bill