Is it true I don't have to pay capital gains tax if the profit margin is 250000. and below on real estate ?
350939
What you are referring to is for primary residences after people have lived there for 2 years... This does not apply in you situation.\n\nWhat does apply is a procedure known as a 1031 exchange.  1031 exchanges allow you to totally defer your capital gains tax by reinvesting the proceeds of your sale into another 'like kind' property.  (like-kind refers to the other property being investment use as compared to personal use).\n\nI'm finishing up the testing on a 1031 exchange site.  The information is real, and many of the test properties are available listings as well.\n\nFeel free to check the site out for the basics on a 1031 exchange.
869035
the rental business is different from the development business.\n as a professional realtor mary gets special depreciation losses each year ( well by special i mean unlimited to the usual $25K)\nRENTALS are 1250 i think\n\nthe  accumulated depreciation on the rentals must be figured into the equation by adjusting the cost basis downward which may raise the gain up above a loss as you hypothexize. this will in turn create a tax liability of cap gain.\n\n land held for future development may be inventory of the develpoment business so selling it at gain  probably creates ordinary business income. perhaps require self-employment tax in addition to other ordinary income tax. these are not subject to cap gains rate \n\nPS he is probably active participant on rental property but must answer questions about this from facts of case. he must manage it some etc.it sounds like he is active participant to me.
1097884
You will pay capital gain tax if you do not roll it over in accordance with the rules governing section 1031 exchanges.  If you buy another property and do it in accordance with this section of the tax code, you will not have to pay the tax.  Look up the rules governing this type of exchange.  Basically, if you put the funds in the hands of a "qualified intermediary" and buy similar investment property, you will not have to pay any tax as long as you do so within the time periods set forth in this section.
597227
did you use the interest and taxes as deductions in the past (you should not have technically)\n\non non personal property (you did not live there) that is not (has not) generated income the interest and taxes are added to the base cost of the property (this will help reduce your gain; it is not a capital gain though)\n\na property that is purchased to be sold and not rented is treated the same way as inventory would be treated (you pay income tax, it is not a capital gain)\n\nif you have a loss it is applied against your income to reduce your taxable income\n\n\n\nTaxation – Lesson 7\nCMA Canada - July 2004 Page 31\nBusiness income versus capital gain\nIn most cases, a business is readily identifiable by the nature of its activities. For example, the manufacture and development of computer chips for resale would constitute\na business. Sometimes, however, it is difficult to distinguish whether income from a transaction is business in nature or capital gain. The sale of land can be either a capital transaction or a business income transaction depending on the facts of the circumstances.\nThe distinction is important because, as you will see, business income is fully taxed whereas only one-half of capital gains are taxed. Moreover, business losses can be\napplied against all other sources of income (e.g. capital gains or employment income), whereas capital losses are only available for offset against capital gains. Business income\nis taxed less favorably while business losses are treated more preferentially. The full amount of business income is taxed in the year that it is earned while only one half of\ncapital gains are taxable, in the year in which the gain is realized. Business losses, unlike that of capital losses, can be used to offset income from all other sources.\nThe chief factor in distinguishing a business activity from a capital gain transaction is the intended use of the property on acquisition. The principal reason for the purchase and the subsequent use of the property will determine the type of income of the profit (loss)\ngenerated upon sale. If the property was acquired for the purpose of resale, then its disposition is likely business income. i.e. if the property purchased is considered\ninventory, then all profits triggered upon sale would be considered business income.\nConversely, property acquired for the purpose of providing the owner a long-term benefit is likely capital property; its disposition creates a capital gain or loss, i.e. any gains generated upon the sale of capital assets used in the course of running a business are deemed to be capital gains.
85232
No.  It is a personal use vacation home.  The good of selling your home is the gain on primary residences are not taxed...the bad is losses are not deductible.
627801
No, you can't avoid capital gains tax. Unless it is in an IRA if you sell it you pay taxes. That may not be that bad. If it is a long term gain bite the bullet and pay the 15%. The 15% maximum capital gains tax is a big windfall to someone in your situation. No one likes to pay taxes but in your case it is pay me a little now or a lot later.\n\nIf it isn't a long term gain yet then certainly wait until it is.
358266
If it's your main residence and you live in the UK no. If it's not your main residence you pay capital gains tax. You have an allowance for capital gains for the year 2006 to 2007 of £8,800 so you pay tax on a gain over that. you should also adjust for the effects of inflation - check the finance pages on TV teletext - there used to be a chart for that on there - not sure if there still is. Outside the UK the tax rules are probably similar - ask your local IRS office. Incidentally, capital gains applies to the sale of a copyright so if you write a magazine feature in the UK and get paid up to £8,800 in this financial year - you won't pay tax on it. Assuming you haven't used your allowance for something else. Capital gains tax does not apply to cars, household furniture, etc. Basically, stuff that goes down in value normally. So you can't offset the loss on a car against a gain. But a gain on a car is tax free (as long as you don't sell them as a business).\n\nThat is one hell of a top answer! 10 points!
8094
No.  The instant you ever receive any dividends, even if you immediately turn around and plow them back into the stock, it doesn't matter, you have recieved income, and that income is taxable.  \n\nThis is one of the many reasons real estate is my investment of choice; it doesn't have these pesky tax problems...
456285
The only way is to EXCHANGE them for other income property, called a SECTION 1031 TAX-DEFERRED EXCHANGE.  There are rules and time limits, and you cannot take out any cash without paying taxes on it.  If you cash out and just sell the properties, there is nothing to help offset or eliminate the capital gains tax at both the federal and state levels (if your state has income tax).  For more information, you can go look at the Federation of Exchange Accommodators website www.1031.org.
81022
Here is the specific link you will need:\nhttp://www.irs.gov/publications/p523/ar02.html#d0e1931\n\nYou can exclude up to $250,000 of the gain on the sale of your main home if all of the following are true. \n\nYou meet the ownership test.\n\nYou meet the use test.\n\nDuring the 2-year period ending on the date of the sale, you did not exclude gain from the sale of another home.
47310
You're correct.  Presumably you received a 1099-DIV with $8000 (or whatever) in the cap gains distribution.  You would need to include that amount in your return.  When you sell the shares, that amount will be included in your basis so your eventual gain will be total sales price-$108,000.
1069923
Yup, you're taxed on income (salary, dividends, rental income etc).\n\nProperty is taxed yearly based on the value of your property (I think).  \n\nBuying and selling shares are taxed on point of sale, so if you do not have any other income, you can file for a refund at the end of the year.\n\nCapital gains are NOT taxable so if you strike the lottery, it's all yours.
1094659
AS far as I know, you have to pay taxes on the sale if you make a profit of $500,000 or more on your house, not otherwise.
294888
You should check with a good accountant (not one of the walk up places like H&R). I am pretty sure that Capital Gains is to be paid only on amounts over $250,000.
463475
Depends on whether this is an investment property or your primary home.\n\nPrimary homes allow for a gain of up to 250,000 if you are single, 500,000 if you are married.\n\nIf this is an investment, you will have to pay capital gains if you do not do a 1031 exchange.  There are formulas to calcualting your gain and applicable taxes.\n\nYou can also choose to do a 1031 exchange, and defer capital gains taxes into another investment property.\n\nHere's a link to the capital gains calculator on my site:\nhttp://www.nnnstore.com/1031_capital_gains_calculator.php
94745
Not if it was your primary residence.\nIf it was rental property then you have to declare the gain.\n$10,000 - basis (what you paid for it) + depreciation (basis/27.5 * # of years rented)\nIf it was a second home, talk to a tax pro (not HR Block or another chain)\n\nDick
427797
It's only considered federally for capital gains tax, not income tax.  If your state, doesn't have a capital gains tax, and I don't know of any that do, then you wouldn't pay any state tax on the sale.