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Sale of real property (part of residential property) and tax liability?

Investors want to buy parcels of my' land (and my neighbors) in the backyard to build a residential development. I am considering it but I would like to make a deal with them where I would allow them to develop the land but I would keep the specific lot behind my house so I could sell that lot in the future. What would my tax liability be if 1) I flat out sold the land for a lump sum and 2) if I sold the rights to develop on the land but kept the lot for future sale. Any help or direction is appreciated!

Public Comments

1. 1) If you sold the property as a lump sum you would be subject to capital gains taxes on any gains you have made on the property. (The price you purchased the property - what it sold for). Those gains can be offsets by capital losses you might have incurred in the stockmarket. Capital gains are 50% I believe. 2) The money would come in under income. Depending on the nature and structure you have setup (are you doing this personally, through a small business or is this a corporation). The income would be treated and taxed as income, you could have many valid deductions depending on how you structure the deal. Rob is from http://www.informational.ca