Since the property was a gift are there any laws that would prevent me from selling?
Estate Planning Attorney
There is nothing preventing you from selling the property. The tax rate is going to depend on many factors, but as general rule it will be considered regular income and you will be taxed according to your individual tax rate.
However, taxes are never so simple. Factors such as how long you held the property (or how long it was held by the person that gifted it to you). Your basis in the property will affect how much gain (income) you have to report. This basis is going to be the basis that the transferor had in the property (again, generally).
To make a long story short. Yes, you can sell the property. As far as tax is concerned, it would be wise to contact an accountant or tax attorney to review all of the facts.
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This question can only be answered after considering a multitude of factors -- none of which are mentioned in your question. You should consult an EA, accountant, or tax attorney for advice specific to your tax situation.
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You can sell the property. Generally, all income you receive is taxable. If you sell an asset, the profit of the sale is income. To determine the profit, simply look at the sales price and deduct the basis (the price you paid for it). If the asset was a gift, your basis is zero, and the full amount is deemed income.
I hope this helps.
Steven A. Leahy
Please note that the above is not intended as legal advice, it is for educational purposes only. No attorney-client relationship is created or is intended to be created hereby. You should contact a local attorney to discuss and to obtain legal advice.