Capital Gains are taxes that you specifically pay when you are selling something of your own such land or any other correspondingly similar asset. You usually first get your credit and then pay income tax on whatever is remaining. Some taxes are based on how long you've owned that asses, witch become long term capital gain rates. Let us take a look at some of the characteristics of capital gains taxes.
The tax base is a factor that is calculated when you put a specific rate on the value of another specific property when the transferring is taking place. You must also keep in mind, as mentioned afore, of how long the person selling this asset has had it for the sake of long term capital gains rates. Keep in mind that the rates vary from municipality to municipality.
The procedure of paying can be confusing but here is how it goes. The portion that is owed will go into the bank and with it you must contend a tax form to prove that the property is yours as evidentiary support will be demanded. These taxes and payments are due within thirty days from the day the selling papers were signed, or in the case of inheriting a land, within six months.
Let us take a look at the capital gains tax rates that exists. There are several types with different holding periods and tax rates. A short term capital gains (STCG) has a holding period of one year or lesser than that. Its income tax rate is 35%. A long term capital gains (LTCG) has a holding period of more than a year. The tax rate for taxpayers in the 10% and 15% tax bracket range is 5%. The tax rate for taxpayers in the 25% to 35% tax bracket range is 15%. The collectibles has a holding period of one year or lesser than that, with tax rates up to 35%, and for those collectibles who have a holding period more than a year, they have a tax rate of 28%. Small business stock gains with a holding period of more than five years have a 28% gain tax rate. Finally, the real estate main home have a holding period of either one year or more than one year. The one year has a tax rate of 35% and the more than one year has a 5%-15% tax rate.