Friday May 9th - "What about Tax urdens if We Don't Reinvest?" Question: My husband purchased vacant land in California in 1999 to build a home, but had to take a job here in Texas, so he never developed the California property. What kind of tax burden or rates will we be subject to on the sell of this property if we choose not to re-invest in land? Answer: Whatever tax you pay will be based on a long-term profit. That means you will get cash from the sale instead of paying a monthly mortgage for land that is not generating income or depreciating.