The Capital Gains Blog

Archive for the ‘Capital Gains’ Category

Question: How tax treatment of capital gain reduces the real gain?

In 1993 your bought a house for $3.000.000, and sold it in 2007 for $7.500.000. During this period of time your economy had been experiencing 115 % increase in price level. How much the tax treatment of capital gain reduces the real gain you earn if the corresponding tax rate is 20%?
Could you explain how you actually get it and do all the math for a single person no married one?

Answer: The gain is $4,500,000. Either or $500,000, if married filing jointly, or $250,000, otherwise, is exempt. This leaves either $4,000,000 or $4,250,000 taxable. Therefore, the tax is either $800,000 or $850,000. The tax treatment reduces the real gain by $800,000, if married filing jointly, or $850,000, otherwise. Inflation (the increase in price level in the general economy) also reduces the real gain, but you asked only for the amount of reduction that is due to taxes.

DGAP-News: SAF-HOLLAND starts 2010 on a positive note

Dissemination of a Corporate News, transmitted by DGAP – a company of EquityStory AG. The issuer / publisher is solely responsible for the content of this announcement.

Question: Tax liability applicability on salary income and short term capital gain?

I was employed part of the year 2009-10 and got about Rs.1.4 lac as salary and I was deducted about Rs.18000 tax and deposited by employer. During 2009-10, I made profit of about Rs. 3 lacs as short-term capital gain (equity/stock). How much is tax liable from both part employment and CapGain and which challan/bank to use for paying tax before 15th Mar-2010. I am also paying home loan EMI.
Thanks

Answer: On your salary Tax liability is NIL ( because it is less than 160000.00 per annum)
On STCG Tax is 15% of Rs 300000.00
Iyour EMI interest portion is deductible and principle portion is deductible only upto Rs 100000 along with others savings like PPF, GPF or NSCs etc. from your salary income.
but no deductions are allowed from STCG, challan form 280

A fix with sales tax doesn’t last forever

Grand Island, a regional shopping draw, turned to the sales tax in the 1980s as a financial fix for the city coffers.

Capital Gains Tax Instructions on Stocks for 2009, 2010

Caza Oil & Gas, Inc.: Announces Results for the Year Ended December 31, 2009

HOUSTON, TEXAS–(Marketwire – March 29, 2010) – Caza Oil & Gas, Inc. (“Caza” or “the Company”) (TSX:CAZ)(AIM:CAZA) announces the Company’s final results for the year ended December 31, 2009. Caza has hydrocarbon exploration, development and production assets in Texas, New Mexico and Louisiana, USA. H

Question: If you sell your business is it a capital gain/loss or is it treated as income for tax purposes?

Answer: The sale of a business is a highly complex transaction, involving the transfer of assets, inventory, goodwill, etc. Each has it’s own tax treatment so professional assistance is mandatory for all parties involved in the transfer. Most business transfers will involve both capital gains (or losses) as well as some component of ordinary gains (or losses).

Treasuries Find Greenspan’s Canary Fainting in Mine (Update2)

March 29 (Bloomberg) — Former Federal Reserve Chairman Alan Greenspan’s warning that rising yields on government debt will drive up American borrowing costs is resonating with the world’s biggest bond traders, who say this month’s losses in the market for U.S.

Question: Inheritance of property?

I inherited a flat abt 1600 sq.ft in chennai from
my parents after their death, a year ago. Do I have to pay Capital Gain Tax on it? I have not rented it
out nor sold it to anyone, just furnished it and
keep using it. If capital gain has to be paid, what are
the ways of investment to avoid it.
savithri
capita

Answer: There is no Capital Gains Tax on property inherited by you. There will be capital gains only when you sell the property to someone.
If you have more than one house. Only one house can be taken as self-occupied and the other house is to be considered as deemed let out.

Beware advisers who bear investment bonds

Problems surrounding missold investment bonds have reached “epidemic” levels, according to independent financial advisers.

Accountants & Asesores Legal And Tax Advisors