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

Tip of the Day Choose the Right Car Insurance

Choose the Right Car Insurance - Before buying a new car, it is always wise to find out exactly how much coverage you require and only buy enough insurance to...

read entire tip

Related Podcasts
Recently Added
Other Great Sites

Irs Capital Gains Tax

Unless you work for the IRS capital gains are probably something very foreign .In fact, most people, or 8 out of every ten people, have no idea what the term even means, However, capital gains tax is not as complicated as it may seem. Capital gains tax is a tax that is charged by the IRS if sell anything considered a capital asset. Houses, vacant property, stocks, bonds, or retirement accounts can all fall under this category. In fact, any item that brings you income not gained through regular employment can fall under the capital gains category. However, there are stipulations that protect you from being taxed when you sell your personal home. Consider the following stipulations.

Length of Residency

The amount of time you live in your home will have an impact on the amount of taxes you will have to pay or whether you will have to pay taxes at all. For example, if you live in your home for at least two years and then sell it for more than you owe you can avoid capital gains taxes. If you live in your home for less than two years but you sell it for the amount you owe, you will not have any income to pay taxes on. No matter how long you live in the home you can only be assessed taxes on the amount of money you earn over the amount you owe.

Things to Consider

If you have a home that you owe 250 thousand dollars on and you sell it for 250 thousand dollars you did not earn any income. In this situation you would not be assessed any taxes on the sale of the property. However, if you have lived in the home more than two years and you sell it for 300 thousand you still will not be assessed any taxes. On the other hand, if you purchase a 250 thousand dollar home, improve the property and sell it for 300 thousand six months later, you will pay capital gains taxes on the fifty thousand dollars worth of income that you earned.

Why Is There A Capital Gains Tax

Most people do not understand why they would pay taxes on a property they have purchased even if they do sell it an make a profit. However, the capital gains tax was created to stop investors from buying houses and turning them to gain a profit without paying taxes on the income earned.

Discuss It!

lucky patcher free

Lucky Patcher Apk is one of the best Android hacking apps which can also modify some other apps which is already on your device.

chromecast not working said:

This is the online version Chromecast manual. It is the best user guide on setup and using Chromecast.

yify movies said:

yify movies Yes, here comes the free online website to download your favorite movies on your PC/Laptop and also on any other devices

Why Men Pull Away said:

Truly, this article is really one of the very best in the history of articles. I am a antique âArticleâ collector and I sometimes read some new articles if I find them interesting. And I found this one pretty fascinating and it should go into my collection. Very good work!

Benefits of Rutabagas said:

I have been searching to find a comfort or effective procedure to complete this process and I think this is the most suitable way to do it effectively.

Benefits of Cucumber said:

Thanks for the best blog. it was very useful for me.keep sharing such ideas in the future as well.

Health Benefits of Herbs said:

I recently came across your article and have been reading along. I want to express my admiration of your writing skill and ability to make readers read from the beginning to the end. I would like to read newer posts and to share my thoughts with you.

Drinking Water said:

Thanks for sharing this information. I really like your blog post very much. You have really shared a informative and interesting blog post .

Cabbage said:

Great post! I am actually getting ready to across this information, is very helpful my friend. Also great blog here with all of the valuable information you have. Keep up the good work you are doing here.

Most Popular Articles
Most Popular Definitions
Daily Definition

Definition of the Day Securities Analyst

Securities Analyst An individual that is able to analyze the market by studying companies and then is able to make recommendations on which securities to buy and sell using this information. This individual usually works for a bank or brokerage and is able to give investors the information that they...

read entire definition




Home     About Us    Contact Us     Contribute     Sitemap


Copyright © 2009 TeenAnalyst.com