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    • Nikolaisen Land Company
    • Meet the team
  • Auctions
    • Land Auctions >
      • Upcoming Land Auctions >
        • 3/17/20, 10:00am - Towner Co, ND - 312.38 Acres
        • 3/17/20, 12:00 noon - Towner Co, ND - 549 Acres
      • Completed Land Auctions >
        • SOLD!! 2/5/20, 10:00am - Cavalier Co, ND - 160 Acres
        • 12/4/18, 12:00 noon - Benson Co, ND - 266 +/- Acres
        • 11/27/18, 12:00 noon - Rolette & Pierce Co, ND - 840 +/- Acres
        • 8/14/18, 4:00pm - Cavalier Co, ND - 159 +/- Acres
    • Land Rent Auctions >
      • SOLD!! 3/1/18, 4:00pm - Bottineau Co, ND - 500 +/- Acres
      • SOLD!! 12/13/16, 4:00pm - Cavalier Co, ND - 561.48 +/- Acres
    • Real Estate Auctions >
      • Upcoming Real Estate Auctions >
        • 413 4th St NE, Devils Lake, ND
    • Online Auctions
    • Auction Testimonials
    • Auction Press Releases
  • Land
    • Land For Sale >
      • Current Land Listings >
        • Towner Co, ND - 140.04 +/- acres
      • Sale Pending Land Listings >
        • SOLD! Towner Co, ND - 258.82 +/- acres
      • Sold Land Listings >
        • SOLD! Towner Co, ND - 258.82 +/- acres
        • SOLD! 901 11th St SE, Devils Lake, ND
        • SOLD!! 515 Rush Valley Drive, Devils Lake, ND
        • SOLD!! Pierce County, ND - 16.55 +/- Acres
        • SOLD!! Towner Co, ND - 240 +/- Acres
        • SOLD!! Towner Co, ND - 320 +/- Acres
    • Land Market
    • Land Valuations
    • Land Management >
      • Minerals
  • Real Estate
    • Homes For Sale >
      • Devils Lake, ND Area >
        • 7675 51st St NE, Devils Lake, ND
        • PRICED REDUCED! 804 6th St NE, Devils Lake, ND
        • 904 2nd Ave NE, Devils Lake, ND
        • 108 Sandy Lane, Devils Lake, ND
        • 410 10th Ave NE, Devils Lake, ND
      • Cando, ND Area >
        • 942 4th Ave, Cando, ND
        • 1106 5th Ave, Cando, ND
        • 936 3rd Ave, Cando, ND
        • 933 5th Ave, Cando, ND
        • 520 10th St, Cando, ND
        • PRICE REDUCED! 122 3rd Ave, Cando, ND
      • Other ND Town, ND Area >
        • PRICE REDUCED! 6204 Bass Lane, Minnewaukan, ND
        • PRICE REDUCED! 208 Adams St, Edmore, ND
    • Lake Property >
      • 108 Sandy Lane, Devils Lake, ND
      • Scooby's Point, Devils Lake, ND
      • 4039 East Lake Road (on Devils Lake), Crary, ND
    • Commercial >
      • 123 Main Street, Egeland Bar, Egeland, ND
      • 413 4th St NE, Devils Lake, ND
      • 423 Main St, Cando, ND
      • 107 Roberts St, Webster, ND
    • Lots for Sale >
      • Lot 9 Woodlea Dr, Devils Lake, ND
      • 101 Palmer Road, Devils Lake, ND
      • 100 Palmer Road, Devils Lake, ND
      • Commercial Lot, Devils Lake, ND
      • Scooby's Point, Devils Lake, ND
      • 4039 East Lake Road (on Devils Lake), Crary, ND
    • Farmsteads for Sale >
      • 7675 51st St NE, Devils Lake, ND
      • 9880 US Hwy 2, Crary, ND
      • 8300 Hwy 281, Egeland, ND
      • 8323 62nd St NE, Webster, ND
    • SOLD Property >
      • SOLD! Fair Ave, Devils Lake, ND
      • SOLD! 421 Fair Ave, Devils Lake, ND
      • SOLD! 6943 54th St NE, Penn, ND
      • SOLD! 711 8th St NE, Devils Lake, ND
      • SOLD!! 316 4th Ave, Cando, ND
      • SOLD! 2716 29th Ave SW, Devils Lake, ND
      • SOLD! 301 9th Street, Cando, ND
      • SOLD! 24 N Lake St, Rock Lake, ND
      • SOLD! 212 5th Ave, Cando, ND
      • SOLD!! 9325 36th St NE, Crary, ND
      • SOLD!! 857 6th Street, Cando, ND
      • SOLD!! 1302 5th Ave (Villa Apartments), Cando, ND
      • SOLD! 205 2nd Ave, Cando, ND
      • SOLD! 517 Sunset Drive, Devils Lake, ND
      • SOLD! 1109 5th Ave, Cando, ND
      • SOLD! Ridgewood Rd, Devils Lake, ND
      • SOLD! 317 5th Ave, Cando, ND
      • SOLD! 201 Shady Lane, Devils Lake, ND
      • SOLD!! 305 Burgamott Ave, Grafton, ND
      • SOLD!! 607 2nd St NE, Devils Lake, ND
      • SOLD! 4567 79th Ave NE, Devils Lake, ND
      • SOLD - On Scooby's Point, Devils Lake, ND
      • SOLD!! 219 Oakwood Drive, Devils Lake, ND
      • SOLD! 910 2nd Ave, Cando, ND
      • SOLD!! 615 3rd Ave NE, Devils Lake, ND
      • SOLD!! 114 3rd Ave, Cando, ND
      • SOLD!! 205 Sakakawa Dr, Devils Lake, ND
      • SOLD! 322 4th St SE, Devils Lake, ND
      • SOLD! 1201 6th St NE, Devils Lake, ND
      • SOLD! 203 2nd St, Cando, ND
      • SOLD! 5399 70th Ave NE, Penn, ND
      • SOLD!! 28 Roosevelt St, Rock Lake, ND
      • SOLD!! 7866 Hwy 2 Lot 23, Devils Lake, ND
      • SOLD! 1014 6th Ave, Cando, ND
      • SOLD! 703 Railway Ave, Maddock, ND
      • SOLD!! 120 Olmstead St, Egeland, ND
      • SOLD! 942 4th Ave, Cando, ND
      • SOLD! 320 7th St NE, Devils Lake, ND
      • SOLD! 915 4th Ave, Cando, ND
      • SOLD! 400 King St, Starkweather, ND
      • SOLD! 901 5th Ave NE, Devils Lake, ND
      • SOLD!! 1124 5th Ave, Cando, ND
      • SOLD!! 110 3rd Ave, Cando, ND
      • SOLD! 309 9th Ave SE, Devils Lake, ND
      • SOLD! 117 Jakes St, Devils Lake, ND
      • SOLD! 923 4th Ave, Cando, ND
      • SOLD! 506 6th Ave, Munich, ND
      • SOLD!! 803 8th St NE, Devils Lake, ND
      • SOLD!! 1310 3rd Ave S, Cando, ND
      • SOLD!! 218 14th Street, Cando, ND
      • SOLD! 926 3rd Ave, Cando, ND
      • SOLD!! 521 Sunset Dr, Devils Lake, ND
      • SOLD! 6730 66th St NE, Cando, ND 58324
      • SOLD!! Ridgewood Road, Devils Lake, ND
      • SOLD!! 107 1st Ave, Cando, ND
      • SOLD!! 503 10th St NW, Devils Lake, ND
      • SOLD!! 1507 8th Ave, Devils Lake, ND
      • SOLD! 1302 5th Ave (Villa Apartments), Cando, ND
      • SOLD! 1007 1st Ave aka Durum House, Cando, ND
      • SOLD! Mobile Home Parks >
        • Rambush Estates
        • Sunset Mobile Home Park
        • Southtown Mobile Home Park
      • SOLD! Duplex: 203 6th St & 207 6th St, Cando, ND
      • SOLD!! Hwy 19, Cando, ND
      • SOLD!! 7884 68th Ave NE, Cando, ND
      • SOLD!! 522 5th Ave & 421 6th St, Cando, ND
      • SOLD!! 8556 52nd St NE, Devils Lake, ND
      • SOLD!! 7544 Hwy 5, Munich, ND 58352
      • SOLD!! 8443 47th Ave NE, Mylo, ND
      • SOLD!! 6859 Krueger Drive, Egeland, ND
      • SOLD!! 8300 Highway 281, Egeland, ND
      • SOLD!! 5408 60th Ave NE, Brinsmade, ND
      • SOLD!! 6260 26th Ave NE, Rugby, ND
      • SOLD - 5352 66th St NE, Leeds, ND; 13.89 Acres
      • SOLD!! 8556 52nd St NE, Devils Lake, ND
      • SOLD!! 522 7th St NE, Devils Lake, ND
      • SOLD!! 207 3rd St, Cando, ND
      • SOLD!! 304 14th St NE, Devils Lake, ND
      • SOLD!! 701 4th Ave, Cando, ND
      • SOLD!! 938 5th Ave, Cando, ND
      • SOLD!! 403 10th Ave, Cando, ND
      • SOLD! 317 5th Ave, Cando, ND
      • SOLD!! 219 1st St, Cando, ND
      • SOLD!! 221 1st St, Cando, ND
      • SOLD!! 608 2nd Ave, Cando, ND
      • SOLD! 201 14th St, Cando, ND
      • SOLD!! 1110 5th Ave, Cando, ND
      • SOLD!! 414 Olmstead St, Egeland, ND
  • Cap Gains/Exchanges

Frequently Asked Questions Concerning Taxation of Real Estate Sales

1. Is the sale of my home taxable?  General Rule-NO. If you have owned and lived in your home for 2 of the last 5 years, gain on the sale of the home is exempt from capital gains or income taxes up do a gain of $250,000 for a single person and $500,000 for a married couple. There is no requirement to replace the home with another and the age of the taxpayer does not matter. If you have not owned and lived in the home for 2 of the last 5 years some or all of the gain may still be exempt, depending on the circumstances, such as illness, death of spouse,  or loss of your job.

2. I recently inherited some farmland. If I sell it now, will it be taxable? General Rule-NO. The cost basis of inherited real estate is increased (stepped up) to fair market value for the person(s) inheriting it. Therefore, if the land is sold shortly after the inheritance, the cost basis will be the same or similar to the selling price, so there will be no tax.

3. I own land that cost me $500/acre years ago, and now will sell for $1,500/acre. How much tax will I have to pay? Currently, the maximum federal capital gains rate is 15% of the gain if your income is below $200,000 if single or $250,000 if married filing jointly. If your income is above these amounts, the capital gains rate is 20% of the gain plus a medicare tax of 3,8%.  In this case the gain is $1,000/acre, so the maximum tax would be between$150 and $238 per acre, depending on your total income. There also would be a ND tax of about $20/acre.

4. What is a 1031 exchange, and how can I use it to delay or avoid the taxes in #3 above? As a general rule, trading one parcel of real estate for another is not taxable at the time of trade, the basis of each property transfers to the new property, and if the new property is later sold, the basis of the old property is used to calculate gain. If the person later dies, the real estate passes to the heirs  with a stepped up basis, so it can be sold than with no tax. In effect, the gain on the original land has escaped taxation. This works well if there are two parties that want to trade land, but what if both parties want to sell and only one wants to end up with land? The first party could sell the land in #3 above, with the proceeds paid to a 1031 agent. The 1031 agent then buys the land from the second party with the funds. What has happened is the first party now owns the land previously owned by the second party, and the second party has sold its land for cash. The basis of the land for the first party is $500/acre.

5. Will the 3.8% tax on investment income include capital gains from real estate sales starting in 2013? Yes and No. The healthcare law contains a provision , starting in 2013, to impose a tax of 3.8% on investment income, such as interest, dividends, rents, capital gains etc. The tax only applies if your total income is over $200,000 for a single person or $250,000 for a married couple. In addition, the sale of your principle residence is excluded up to the amounts discussed in #1 above. For most people, it is unlikely the sale of the principle residence would trigger the tax, but sale of other real estate could. If you would like an estimate of how you would be affected, please contact us.
For questions regarding 1031 Exchanges, 721 Exchanges and Capital Gains Evaluations, contact Tom Nikolaisen, Attorney-At-Law at 701-968-4307, tom@bulielaw.com or Ken Bulie, Attorney-At-Law, CPA at 701-795-5062, ken@bulielaw.com.

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Nikolaisen Land Company 844.872.4289