The Capital Gains Blog

Archive for May, 2008

Question: What are Capital Gains Tax on house owned less than 2 years but more than 1 year?

I moved into my condo on December 1, 2006 and want to sell this month. How much will I owe in Capital Gains tax if I am in 25% bracket and will have a $50,000 profit? Do they prorate the 2 year rule as I will have been in my condo for 16 months? I would like to buy a home in the same area in NJ. Also will I have to pay NJ taxes too or is there an exclusion in NJ?
Help!

Answer: If you sell now, your additional tax is going to be $7,500. If you can wait (remain living in the house and not sell) until December 2008, your additional tax will be zero.

You wil also pay NJ tax on your capital gain if you sell now. If you wait, no state taxes will apply.

AvalonBay Communities, Inc. Announces Fourth Quarter and Full Year 2009 Operating Results and Provides Initial 2010 …

ALEXANDRIA, Va.—-AvalonBay Communities, Inc. reported today that Net Income Attributable to Common Stockholders for the quarter ended December 31, 2009 was $32,394,000. This resulted in Earnings per Share – diluted of $0.40 for the quarter ended December 31, 2009, compared to a Loss per Share, diluted of $0.02 for the comparable period of 2008.

Question: To avoid paying Capital Gains Tax on the sale of land, must you own it for two years?

Answer: No, the land must be part of your primary residence. Plus, the gain is only deferred. Eventually, taxes will have to be paid.

If its just land that you own, developed or not, you will pay capital gains tax if you have owned for at least one year. The tax rates for capital gains are capped at 15% while the rates for ordinary income can be as high as 35%. So, given the choice, I would rather pay capital gains tax.

Harry & David Holdings, Inc. Reports Second Quarter Fiscal 2010 Results

Harry & David Holdings, Inc. announced today financial results for the second fiscal quarter ended December 26, 2009.

Barn Sale and Garage Sale Items In eastern Pa

Question: Must I pay CGT (= Capital Gain Tax) – and how much?

Hello,
1994 me and my married wife bought a cottage + 4,5 acres of rough land as a holiday retreat in Ireland (Republic). We didn’t live permanently there but invested much work and money in renovations and repairs, then rented the cottage out to holiday-guests. – Now we’re thinking about selling the whole property. My wife and me are both equally owners. We are living in Germany. – Can anyone tell us how much CGT we will expect having to pay to the irish revenue? – Does anyone know how to avoid this tax? – How do we have to proove our gains (if there are any…)?
Thanks in advance for your comments.

Answer: According to this page http://www.citizensinformation.ie/categories/money-and-tax/tax/capital-taxes/capital-gains-tax , I don’t think you are exempt from Capital Gains Tax, because you did not live in the house. The same page also tells you how to submit your return for CGT. This link http://www.revenue.ie/leaflets/cgt1.pdf is a guide to CGT (it’s a pdf document).

Deutsche Bank bounces back with strong 2009 profit

Germany’s biggest lender, Deutsche Bank, roared back last year with a profit that towered over market forecasts while the bank also bolstered its crucial capital base.

Swing Kids 5: Expression VS Censorship: Nazi Capitalist Anarchy Libertarian Fascism

Question: “Your Life’s Account……NOTE IT FRIENDS,,,,?

Your Life’s Account:
Your happiness is your profit
Your sorrows are your losses
Your soul is your goodwill
Your heart is your fixed asset
Your duties are your outstanding expenses
Your friendship is your hidden adjustment
Your character is your capital
Your knowledge is your investment
Your patience is your interest
Your mind is your bank balance
Your bad thinking is your depreciation
Your behavior is your journal entry
Your wife is your partner
Your child is your long term goal and
Your death is your closing stock”

Answer: Nothing like poetry…. to distratic from the real problems of society… WHY? Really, Why? What is this? Are you looking for kuddos? O wow your ability to be creative with symbolism is such a great and wonderful thing, wow look another poet! Gee gollie I guess all my problems are sovled!…. Ether way buddy its nice just seems missed placed here. I mean its great only thing I conflict with is the whole idea of happiness being profit, that just sounds like more pursuit of happiness bs the American Culture thinks well solve all are problems, darn founding fathers. And the fact that most of these people on here whould have to be over 30-40 to actually appricaite it. Other then that how about we keep this from being a place to display are poetry? Or maybe put it in a different section? Then you could get the prasie and kudos you deserve! But as far as getting attention here for it… I hope I didn’t piss you off….

Aftershock drives more from Haitian capital

Meanwhile, a flotilla of rescue vessels led by the U.S. hospital ship Comfort converges on Port-au-Prince harbor to help fill gaps in still-lagging global efforts to deliver water, food and medical help.

HomelandSecurity #404 Public Law 107296 107th

Question: A senior citizen age 73 made $9,000 in capital gains, his only income, what does he pay in taxes?

Answer: After his standard deduction of $5,000 plus $1,250 for his age and his $3,200 exemption …. Looks like he won’t be paying any taxes at all

Pletschet: Low-yield investments different kind of risk

Q: I’m a single woman, almost 80, and worried about my finances. I’m in good health and will probably have an opportunity for a good job in the future.

Davos Annual Meeting 2010 – A Roadmap for a Sustainable Recovery