Do you owe capital gains on farm ground you sell to someone to build a house on?

Yes, you may owe capital gains tax on farm ground you sell if the sale results in a profit. The tax applies to the difference between the sale price and your adjusted basis in the property. However, certain exemptions or deductions may apply, especially if the land was used for farming or if you meet specific criteria. It's advisable to consult a tax professional for guidance tailored to your situation.