The Capital Gains Blog

Archive for the ‘Capital Gains on Sales’ Category

Question: Do I owe Capital Gains Tax on the sale of the house my brother and I inherited when my mom died in Feb. 09?

She bought the house for $110k in 2006. After she died, the house appraised for $110k, and we sold it for $110k in July 09. I paid about $3400 in legal fees, closing costs, etc. After payment of the mortgage balance, my brother and I each cleared about $4200.

Answer: You must report the sale, but you do not have to pay anything unless you fail to report it properly.

If you wish to obey the law and pay nothing, then you must report the sale on Schedule D and enter the correct basis and proceeds so that there are no gains. You then pay nothing.

However, if you break the law by not reporting it, then the IRS will falsely assume that it was bought for nothing and that the basis is $0, and will charge you capital gains tax on the entire $110,000.

Angle Announces 2009 Fourth Quarter and Year-End Results

CALGARY, ALBERTA–(Marketwire – March 22, 2010) – Angle Energy Inc. (“Angle” or the “Company”) (TSX:NGL) is pleased to announce its financial and operating results for the three months and year ended December 31, 2009. /

Home For Sale Lynnwood WA $2499000 Shari Song

Scotiabank reports strong revenue growth and first quarter earnings of $988 million

First quarter financial measures compared to the same period a year ago: – Earnings per share (diluted) of $0.91, compared to $0.80 – Net income of $988 million, versus $842 million – Return on equity of 17.4%, compared to 16.2% – Productivity ratio of 50.5%, versus 58.7% Year-to-date performance versus our 2010 financial and operational objectives was as follows: Targets: 1. Earn a return on …

Question: what is the percentage charged on capital gains like sale of property like house?

Answer: If it is a short term capital gain, you would have to pay tax on normal rate as per your slab of income tax.
If it is a long term capital gain, you can pay 10% without indexation and 20% with indexation.

Investors Sell Ahead Of Possible UK Tax Hike

Property consultants have reported a significant rise in the number of second home-owners and long term investors in central London putting their properties up for sale as speculation grows that the government will increase the Capital Gains Tax rate in the 2010 budget, due to be announced in the coming weeks.

Question: What starts and ends the two year period before tax free capital gains on sale of home?

Answer: To exclude the gain from tax you must both own AND live in the home for two of the five years prior to the sale date. The closing date on the sale matters. The closing date when you bought it may or may not matter. The date or dates that you moved in and out of the house will also matter as the two years do not need to be a continuous period of time but may have breaks in between as long as they total a full two years in the five year period immediately prior to the sale.

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More private banks on the cards The Finance Minister has heralded the third phase of the opening up of the private sector banking space. Mr Pranab Mukherjee announced that the Reserve Bank of India is considering giving some additional banking licences to private …

Question: we are going to start investing in real estate. we are going to fix up houses and reselling them?

when paying capital gains. is it the total sale of the home. or the profit you made on the home

Answer: The profit

U.K. Gilts Rise as Housing Gains Slow, Stock Indexes Decline

Jan. 12 (Bloomberg) — U.K. government bonds rose for a second day as stock markets fell across the world and a house- price gauge added to evidence the recovery may slow.

Buying & Renting Real Estate : How Does Owner Financing Work?