Does the capital gains tax mitigate the effect of the cinome tax? If so, how?
372532
Overall yes.  Long term capital gains income is taxed at a lower tax rate than ordinary income, so if you have income that qualifies as such, your overall tax liability will be less than if it was all taxed as ordinary income.
1135699
That depends.  If it was your principal residence, and if you lived in it for 2 out of the last 5 years immediately prior to the sale, then you may exclude up to $250,000 ($500,000 if married filing jointly) in gain from federal taxes.  Excess gains are taxed as capital gains, as is the entire gain if you don't meet the ownership, residency and/or occupancy conditions.\n\nCA law may vary on that.  Consult a tax advisor in CA for full details.
857497
You may minus mortgage interest and any other expense (except for cost for major improvement) form your total rental income and report it as either gain/loss. Unless you have a tax program it is rather time consuming to calculate. Also to take advantage of tax deduction, you may depreciate your house, which takes another form. I have my HR block tax professional do the form and it saves time and definitely worth it. The loss from my rental house offset my adjusted gross income by thousands of dollars every year.
482743
No, if it is your principal residence, and you sell within 2 years.  However, if this is an investment property, and you are using that money to buy another investment property.  The transaction could be set up as Sec. 1031 exchange, which will result in a tax deferral.
631114
Technically yes - but only on a proportion of the total gain.  The period relating to your living there is exempt from CGT, as is a further three years (based on an old assumption that it may take you a long time to sell).  There are further exemptions depending on your circumstances - eg if you are employed abroad or working away from your home town for certain periods.  It is more complicated if you own a second home as well, in which case you should get specific advice - or put more details on here and I`ll try to help!
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.
170150
Is this your primary residence? If so, you may have no capital gains tax payable on up to $250,000 capital gain or up to $500,000 if you are married.
967093
This is a tricky one.\n\nYou would pay capital gains taxes on the difference between the sale price and the basis.  The basis would include the original cost plus any improvements.  The property taxes were probably deducted each year so you can not add those to the basis.  You may get a "stepped-up" basis for half of the land based on the fair market value of land on the date of his death.\n\nIt is time to see a professional.  I would not attempt this on your own.
740716
No, none.\nYou can hold the property for one year and pay capital gain rate.\n15% I believe.\nStill- if you turn too many over the IRS can come in and reclassify you as a dealer and you're owe retroactively.\n\n         The real tax bennies are in landlording.
27709
We recently purchased a new house and wanted to sell, and reinvest the money into a new one... we called the IRS directly to find out if we'd be charged a capital gains tax, and the answer was yes.  If you sell your primary residence within 2 years, you will be charged a capital gains tax.  However, there could be good news...\n\nLast year if you made 49,5k or less you were only charged a 5% capital gains tax.  If you made more than that, you would be charged 15%.  To help maybe smooth the hit over on your $35k taxes...\n\nYou subtract legal, agent, long-term house upgrades from that number and only claim that as profit from the sale.  So if you made 35k from the sale, but your agent's fees were 10k, legal were 5k and house improvements to the old house were 1k, you would only claim 19k.  \n\nPlease, please please double check this with the IRS and/or your accountant.\n\nOh - and if you moved because you either lost your job, or relocated to a different state (and there are some other things), you could be exempt altogether from the tax.\n\nGood luck!!
743449
If this is your primary residence there is no capital gains tax. The purchasor will only pay stamp duty at 3% (£10,800).\nIf this is not your promary residence you will also pay capital gains tax. But to calculate that you will need to give the price you bought the house for and how long you have held it.\nCapital gain will be at gain (£360,000-purchase price) adjsted for taper relief (depends on how long you have held it). \nAlso any improvements you have made can be taken into account in the cost (e.g. extensions).
277942
Understanding Capital Gains on Mutual Funds\nOften when tax season nears, mutual fund investors become confused. Why do we have to pay taxes on a fund that had a losing year? \n\nBy law, mutual funds must declare distributions each year. These distributions represent a profit the fund made when selling securities. Every year, usually in December, the fund will pay out these gains to the shareholders in the form of income dividends and/ or capital gains. \n\nEven in years with negative returns, mutual funds can, and must, pay out distributions. Capital gains are calculated by taking the price you sold the security for and subtracting your purchase price (cost basis). It doesn't matter if the securities that the fund held were doing poorly, all that matters is that the fund sold the security at a profit and must now pay out the profits in the form of a distribution, which is a taxable event for the shareholder. \n\nTo better understand how this could happen, imagine your fund bought a security in 1997 for $15 a share. \n\nSponsored Links\nHighest Savings Rate.\nCroft APY. No mins. No fees. No accounts.\nwww.double-fx.com\n\nIndia properties for sale\nExcellent properties available at great locations. Contact now!\nClassifieds.Sulekha.com\n\nCapital Gains Tax\nLooking for Capital Gains Tax? Get more information here.\nwww.toseeka.com\nAt the start of 2000, the security was worth a total of $30 a share, but the fund ended up selling the security for only $25 a share. This is a loss for the year, but an overall profit of $10 a share. Another possibility would be for the fund to sell the security for $35 a share, which is a gain even for the most current year, but the rest of the funds holdings went sour and created a losing year for the fund. This fund would still be forced to pay out capital gains on the security that they sold. \n\nWhat if the fund has capital losses? \n\nIt is possible that the fund did not make a profit off selling its securities. In the case of capital losses, the fund would not pay out a distribution (although they could pay income distributions). The fund would apply the loss to future capital gains. \n\nWhat if I signed up to automatically reinvest the dividends? \n\nThis is still considered a taxable event. Reinvested dividends are treated as cash payments. \n\nWhat if I bought the fund one day before the distribution was declared? \n\nSorry, but you are out of luck. It doesn't matter whether you held the fund for one day or for 10 years, you are still stuck with paying taxes on the distribution. This is why advisers usually recommend that you never buy a fund right before it pays a distribution. The distribution does lower the net asset value (NAV), allowing you to deduct it when you sell the fund, but paying the taxes sooner rather than later prevents you from gaining investment income on the amount that is taxed. \n\nWhat if my mutual fund is in an IRA or 401k plan? \n\nIf you find yourself in this situation, there is no need to worry. Taxes do not affect a non-taxable account. Uncle Sam will have to wait until you start taking money out of these accounts (the Roth IRA is an exception
812345
I'm just going off the top of my head here without looking anything up, so just use my answer as a guide and not fact.  (Because staring at the code is factual, but sometimes doesn't get you very far in thought.)\n\nThe rental property.  Chop this up into three components - land, building and personal property.\n\nLand, as you know, is not depreciable.  But it should be listed as a separate component of the sale.  \nThe building is depreciable, but will also be under an additional code section, 1250.\n\nThe general rule starts with section 1231 property.  Then, depending on what it is, it might ALSO be 1245 property or 1250 property.  But just to keep things simple, think 1245 = equipment and 1250=buildings.\n\nBoth 1245 and 1250 pretty much say this: When you sell the asset, the amount over adjusted basis, up to the extent of depreciation taken, is ordinary gain.\n\nFor example.  I bought a piece of equipment a few years back for 10,000.  Tuesday, when I sold it, it had a tax adjusted basis of 1,000 (10,000 historical value less 9,000 of accumulated tax depreciation taken).  I collected 5,000.  In this case, ALL of my 4,000 gain (5,000 sales price less 1,000 adjusted basis) will be ordinary income.  \nLet's say I sold it for 12,000.  9,000 of my gain would be ordinary and 3,000 capital gains.  \nNow I'm babbling.  But in a nutshell, you are recapturing the depreciation expense at ordinary, just like you took the expense (over time).\n1250 for buildings has something similar, but not many have that issue anymore (unless they were purchased over a decade ago or so).  There is some special additional tax on the gain or special rate.\nBut the losses are ordinary, thankfully.\nAnd I feel like I'm getting off track here, but I'm trying.  :)\n\nBut onto the land.  It depends.  And perhaps this is where saying more info is needed might help.\nIf this is a separate piece of land accounted for seperately and Mary can prove that she wasn't going to improve anything, then there might be support for the claim that it is a capital asset and the gains are capital.\nHowever, that would be really agressive to me considering it saysing "holding for future development" and if there has been anything substantial done to the property.\nIn short, you will want to check out code section 1237 for reference too although it doesn't exactly fit your problem.\n\nAnd last but not least, I'll clog this answer with an Explanation nabbed from my own stuff.  Good luck on your research and forgive me for such a lengthy answer.  Usually I hate stuffed answers.  Cheers!\n\nReal property produces capital gain or loss on its sale or exchange if it's a capital asset. The main reasons for the exclusion of real property from the capital asset category are (1) that it's property held by the taxpayer primarily for sale to customers in the ordinary course of his business, and (2) that it's real property used in his business. Code Sec. 1221(a)(1) , Code Sec. 1221(a)(2) . However, the sale or exchange of real property used in a business (including rental realty), or the involuntary conversion of such property or real property that is a capital asset, can produce a Code Sec. 1231 gain or loss. \n\nThe fact that real property is held primarily for sale to customers in the ordinary course of a taxpayer's business precludes it from being either a capital asset or a Code Sec. 1231 asset (business-use property). Code Sec. 1221(a)(1) ; Code Sec. 1231(b)(1)(B) . The factual question of whether real property was so held gave rise to intensive litigation. Cases decided under Code Sec. 1231 are covered as part of the question of what property is used in a business. Decisions delineating property that is a capital asset are covered in this subdivision. The special rules of Code Sec. 1237 , allow taxpayers other than C corporations to obtain limited capital gain as to property subdivided for sale under certain circumstance
519939
If you ignore the increased cost due to default concerns, then no.  Most of the time, the cost of the debt is less than the cost of equity because of various reasons, including the tax shield on interest payments for debt.\n\nSo, increasing the weighting of debt would decrease WACC.
543390
No, Only investment in residential flat and not any shop  is allowed for the purpose of exemption from Capital Gains u/s54 of the I T Act.\n   Please consider , and this is also related to our earlier question regarding the best option for you to save taxes . following option\n\n   1. Invest in some residential flat with a view to sell it after three years. You will get exemption from Capital Gains, you will get Indexation benefits when you will compute the capital gains on the flat sale and mind you the  most permanent appreciation in growing India is Real Estate  in India right now. So overall you will get highest return from your investment. Moreover, if you also take loans for purchase of flat , that will further reduce your liability to tax for three years.\n2. Keep the amount of capital gains in Capital Inc&#92;vestment bond and as per law if you do not invest it withing next two years from the date of transfer, the amount will be the capital gain in the year in which such three years from the date of transfer of the flat completes. Thus you are only forwarding your tax liability by some years.\n3. Pay the tax.and be in peace!
587371
My friend, there are a lot of issues in your question...I will attempt to brief you given your information.\n\n- You only pay capital gains tax on investment property or one that you earn income from.\n- You never lived on it but you owned it.  One assumes you therefore did not elect it to be your 'principal' place of residence.  \n- You held it more than 12 mths so you are entitled to 50% discount on capital gain (equity growth)\n- Capital gains can only be offset by capital losses....Your cost base seems to be more than cap gain. if so you wont therefore pay any tax on that gain (all be wiped off) However the excess losses accumulated cannot diminish or offset your over assessable income from other sources in yr tax return....Those losses are held and carried forward until you have any future Cap Gains.  then those losses will be used up.\n- Interest paid on ANY INCOME EARNING ASSET, OR INVESTMENT MECHANISM, ie Property, Boat, Vehicle, Business etc  are ALL DEDUCTIBLE....But only the investment and earning part. So you have to apportion the INTEREST that is BUSINESS related.  Ie...You get a loan for a whole house...You rent out a bedroom...You only claim for interest apportioned on a reasonalble basis related to the bedroom, some gas and electricity, maybe kitch etc etc..Usually done on floor space.\n- Must also realised interest is also claimed on an investment  property that was 'available' for rent but remained vacant.  ie even if someone didnt live there or no tenant, the interest is still deductible..But there are conditions.\n-Family TAX assistance (I think you mean Family Tax Benefit A and B??).  Anyway, the benefits depend on the following ATI or Adjusted taxable income.  That is:\n\nTaxable income (incl after Capital Gains & Losses been worked out) plus fringe benefit amounts on tax return  plus  tax free pensions or benefits PLUS losses from Rental property income...ie Net rent loss.\n in other words Net Rent  wont affect you. but say yr property was rented out and you made a loss, You have to add that loss back to your Taxable income to arrive at the TOTAL ATI used to assess your entitlement to Family Tax Benefit A and/or B.\nHope this helps.\nLater.
283155
If you make a profit on a house that you own over such a short period of time, then that profit is income and it must be reported as such.  If you hold the property over a longer period of time, the profit becomes "capital gaines" and is taxed differently.\n\nThere are a number of ways, however, to "shelter" your income from tax liability.  If this is something you plan to do on a regular basis, then I would suggest that you consult with an accountant about handling your house purchases and sales as a business venture.