Tax Benefits of Selling Your NC Land This Year

Published on September 4, 2025 | By Tyler Moncrieff

1. Capital Gains: Why Timing Matters

If you’ve owned your land for more than a year, a sale this year may qualify for long-term capital gains rates—which are much lower than ordinary income tax rates. In 2025, most landowners in North Carolina pay 0%, 15%, or 20% on long-term gains (depending on income bracket). That’s often a huge savings versus short-term (flipped) property.

2. Offsetting Gains with Losses

Did you lose money on stocks or crypto this year? You can use those losses to offset gains from selling land, lowering your overall tax bill. Many smart investors use this “tax harvesting” strategy before the end of the year.

3. 1031 Exchange: Defer Taxes (If You Buy Again)

Want to roll your profits into another land investment? A 1031 Exchange lets you defer capital gains taxes by buying a “like kind” property. This can be powerful for larger tracts, farm, or commercial land. You’ll need a qualified intermediary, so talk to a CPA or attorney first!

4. Conservation Easements & Donations

Some rural land parcels qualify for major tax breaks if you donate development rights (a “conservation easement”) or donate land to a nonprofit. This is complex but can create a big deduction—ask your tax pro if your property qualifies.