Does capital gain tax apply here?

My 81 year old sister had 10 acres in oregon that she lived on 5 acres. She sold five acres and paid off her loan on the total property and now she wants to know if the capital gain rules apply . Does she have to pay anything??

Answer #1

Hi,

Yes, it does. Since she did own the property, I think no matter if she paid it off, the capital gain tax applies because it was her property.

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