If you believe any of the myths surrounding capital gains tax and how it affects you, there is a good chance that you will include erroneous information on your income tax return. This can lead to problems in the future, including a lower tax refund or even an audit by the IRS. It is important [...]
Capital Gains Tax
The average American selling a home this year probably doesn’t have to worry about a capital gains tax. The Federal government provides a measure or capital gains tax relief by allowing an individual to exclude up to $250,000 ($500,000 for a married couple filing jointly) of capital gains on the sale of real property if [...]
If you are required to report a capital gains tax on the sale of your principal residence, it is reported on Tax Form 1040, Schedule D (PDF), Capital Gains and Losses. (You cannot report a capital loss on your property). If you owned your home for less than one year, you will report a short-term [...]
If you sold or are thinking of selling your home in the near future and you owned and lived in it for a minimum of two years total, you can exclude up to $250,000 in capital gains tax from the sale of a primary residence (married couples can exclude up to $500,000). To qualify for [...]
The Jobs and Growth Tax Relief Reconciliation Act (JGTRRA) of 2003 lowered the maximum capital gains tax rate from 10% to 5% for people in the lower two tax brackets. It also lowered the rate from 20% to 15% for people in tax brackets of 25% and higher. Originally, the 0% tax rate applied to [...]
The expiration of the Bush capital gains tax cuts in 2010 has a lot of investors preparing to unload real estate investment property to minimize the capital gains tax on any profits they may have reaped. The Federal top tier bracket leap from 15% to 20% in 2011, for long-term capital gains may not be [...]
When determining capital gains tax rates, there are several details that need to be considered. If you are unsure of how to make this determination on your own, you may want to speak with a tax professional. Not paying the proper capital gains tax can result in future problems, such as owing more money to [...]
When an asset is sold, its cost basis is used instead of the actual purchase price to determine the accurate capital gain or loss for capital gains tax purposes. This is very important to remember because it can result in a tremendous difference in the amount of capital gains tax due when an asset is [...]
Do you know anything about capital gains and losses? If not, you should learn about them as soon as possible because they can have an impact on your tax return as well as your overall financial situation. A capital asset is basically anything that you own/use for personal or investment purposes. This can include stocks, [...]
The more you know about capital gains tax the better off you will be. Unfortunately, there is a lot of misinformation circulating that can confuse taxpayers. It is essential that you know the facts, while disregarding all myths about capital gains tax. That way, you can play by the rules set forth by the IRS, [...]
