Home     About Us    Contact Us     Contribute     Privacy
Mutual Funds
Related Articles
Related Definitions
Related Categories
Tip of the Day

Tip of the Day Ask For A Raise

Ask For A Raise - If you have been with the company for over a year and you have been working hard and feel that you are entitled to a...

read entire tip

Related Podcasts
Recently Added
Other Great Sites

Capital Gains Tax Second Home

If an individual owns two homes and he decides to sell one, the sale will attract Capital Gains Tax if it is the second home. The Capital Gains Tax on second home is calculated by taking the price you sold the house for, and subtracting from it the purchase cost and also any costs of capital improvements and addition of structures. The Capital Gains Tax will be 15% of this amount.

When a person has two properties, and the individual has been living in both regularly, then which one can be called a second home? This is an important question as Capital Gains Tax is applicable only on the sale of second home and not on the Principal Private Residence or main residence as it is commonly called. If after buying the second home you have been living regularly in the second home then it will become your main residence and your original house will become your second home and will attract Capital Gains Tax if you sell it.

Many people buy a second property after retirement and want to sell their original home. As mentioned in the previous paragraph, the original home will attract Capital Gains Tax. To avoid this situation, there is a method of nominating one of your property as your main residence. From the date you purchase your second home you have a period of two years during which you can nominate one of the properties as the main residence even if you do not plan to stay in it. An extra step you can take to be more prepared in these types of situations is to take a few courses in a graduate tax program. This will provide you with the knowledge you need to handle any tax situation that may arise.

So if you want to sell your first house, and have started living in your second home, you can nominate the first house as your main residence. By doing this the tax authorities take the nominated house as Principal Private Residence, and will not levy Capital Gains Tax on its sale. It is important to note that a married couple can nominate only one home as the main residence, and if it is an unmarried couple, they can individually nominate one house each which they own.

If the couple or individual fails to nominate the property in the given time period, then at the time of sale the owner has to prove to the tax authorities, that it is the principal residence that he is selling. This can be a complicated affair and the final decision will rest with the tax authorities. To avoid all these problems it is always wise to nominate your properties so that there is no confusion, and the matter is made clear legally.

Discuss It!
1 2 >

lee s chum said:

How to nominate the house as the primary resident. Any form to fill out or any agency to contact. thank you

http://www.youtube.com/watch?v=DpRu5_smlnM said:

Thank you for posting such a great article! I found your website perfect for my needs. It contains wonderful and helpful posts. Keep up the good work!

"Best HTML5 Software" said:

I am excited to see One of the best HTML5 animation software that are available in the market today. Check this site...

moving companies said:

So luck to come across your excellent blog. Your blog brings me a great deal of fun.. Good luck with the site.

Europe said:

Trying to say much appreciated won't simply be sufficient, for the fantasti c clarity in your written work. I will right away get your rss channel to stay educated of any redesigns.

happy new year quotes 2015 said:

"This is just the information I am finding everywhere. Thanks for your blog, I just subscribe your blog. This is a nice blog. "

California foreclosures said:

I cherish the online journal. Extraordinary post. It is genuine, individuals must figure out how to learn before they can learn. lol i know it sounds entertaining however it genuine. . .

http://www.trading-binaryoption.com said:

I cherish the online journal. Extraordinary post. It is genuine, individuals must figure out how to learn before they can learn. lol i know it sounds entertaining however it genuine. . .

bank of america foreclosures said:

Wow! What an eye opener this post has been for me. Very much appreciated, bookmarked, I canât wait for more!

assignment writing uk said:

Thanks for sharing such nice information with us. Please keep on posting so that I can keep myself updated.

What is Dumprep said:

All this home tax has got me feeling all drowsy, considering my situation, though not bad. Anyway, this looks interesting to me.

best inflatable mattress said:

I quite like your blog. Amazing post. It is quite right, persons should learn how to recognize ahead of they can recognize. lol i am aware that will shows up funny the ideal revealed...

microsoft office product activation failed said:

This is just ridiculous you know. I mean, these taxes are something that makes me feel like I am robbed. I mean, these are hard earned money that they are pulling from us as taxes.

Power Quality - OptiVolt said:

Nice post!! Thanks a lot for the kind of perfect topic I have not a lot of information about it but I have got an extra unique info in your unique post.

youtube subscription | increase youtube views said:

Very nice blog and articles. I am realy very happy to visit your blog. Now I am found which I actually want. I check your blog everyday and try to learn something from your blog. Thank you and waiting for your new post.

http://languageofdesire.co/ said:

With so many books and articles coming up to give gateway to make-money-online field and confusing reader even more on the actual way of earning money, Hubwit is a refreshing change. I stumbled upon this site while searching for work-form-home options.

animated video company said:

Well, if anyone has two properties, but doesnât show off to other people so great decision is to sell one of them. And ad has come in the video as the animated video company provides this kind of services to their clients in which tell everything about your products and services.

Administration jobs Melbourne said:

Very nice blog and articles. I am really very happy to visit your blog. Now I have found which I actually want.

lettersjablonen said:

wow, nice information admin, thanks for sharing

australian essay help said:

Really nice and interesting post. I was looking for this kind of information and enjoyed reading this one.

Most Popular Articles
Most Popular Definitions
Daily Definition

Definition of the Day Investing Glossary - M


read entire definition




Home     About Us    Contact Us     Contribute     Sitemap


Copyright © 2009 TeenAnalyst.com