Capital gains are profits that from capital assets stocks, bonds or real estate. A capital gains tax can be levied on these profits. Find helpful articles, videos, blog posts and radio shows about capital gains and the types of transactions that involve capital gains.
Home Sale Exempt From Capital Gains Tax
A homeowner sells their home using an installment contract and wonders if they need to pay capital gains taxes on the balloon payment. The profits from the sale were below the threshold for capital gains tax, so they will not have to pay taxes on that amount. However, the homeowners may have to pay tax on the interest paid if the home was sold via an installment contract.
Selling Investment Property And Avoiding Capital Gains Taxes
A lucky investment property owner is debating whether to flip a property and make a profit or using it as a primary residence for two years to defer capital gains taxes. Before making a decision about selling, figure out whether you want to keep doing this as a business and if so, consider using a 1031 exchange to purchase a replacement investment property.
Selling Property For $1 Results In Huge Capital Gains
A mother sells her home to her children for $1. Now they face a massive capital gains tax bill. Gifting the home or leaving it in her estate may have been a better plan to avoid huge capital gains taxes.
Capital Gains And Investment Property Sale
An investment property owner wants to know about their tax obligation when selling the property. To read more about what tax is owed when you sell investment property, go to the IRS's website (irs.gov) and download Publication 550 "Investment Income and Expenses" and Publication 527 "Residential Rental Property."
Rollover Capital Gains Question
A 1031 exchange, or a Starker Trust, may apply in certain situations with investment properties. In this situation, a reader has two homes and vacant land that they want to transfer to a builder in exchange for doing work on on one of their homes. Unfortunately, a 1031 exchange will probably not work in this circumstance because they already own the property. However, they should talk to a tax professional for more options.
Home Office Deduction And Capital Gains
The home office deduction may be available to you if you are running a business out of your home. But what happens when you stop using your home office? How does it affect your capital gains when you sell your home?
Managing Capital Gains Exemptions on Two Properties
A couple owns two properties and would like to sell both of them with a minimum of capital gains tax. Capital gains tax exemptions require certain conditions for the use of the property. Ilyce reviews capital gains tax requirements and suggests the couple consult their tax preparer for what makes the most sense. for their properties.
Avoiding Capital Gains Tax on Condo Sale
A condo owner makes money on the sale of his condominium but still needs to pay taxes. He never lived in the investment property and it is considered a short-term investment. Short-term investments fall under the maximum tax rate. With other kinds of investment property, you may be able to avoid capital gains tax with a 1031 exchange or a Starker Trust
Capital Gains Taxes On Farm Property
Even if your property is considered farm land, if you use the property as your primary residence, you are eligible to take the capital gains deduction. To take the deduction, you must have lived there as your primary residence for at least two of the past five years.
Capital Gains On Rental Property
Upon the sale of a home, a homeowner will have to pay capital gains taxes and, in addition, may have to pay taxes on any depreciation taken on the property over the years. A 1031 exchange may be used to avoid taxes on investment property. Buying a like-kind property could allow the homeowner to use a 1031 exchange on the investment property.