The Capital Gains Blog

Archive for the ‘Questions about Capital Gains’ Category

Question: Under Obama’s tax plan, no family making less than $250,000 a year will see any form of tax increase…?

not your income tax, not your payroll tax, not your capital gains taxes, not any of your taxes.

Barack Obama has pledged as such in his recent speech in Dover, NH (go to time 1:05 in the video):

Furthermore, nonpartisan tax organizations like the Tax Policy Institute have analyzed the tax plans of both candidates and have come out and said that Obama’s plan saves middle-incomce families more than does McCain’s.

So what more evidence do Republicans want? Why do they keep thinking that “Obama will raise your taxes”? What more does it take to convince people that Obama’s tax plan saves the majority of American families more than does McCain’s?

Answer: This sounds like an issue, and that’s krypton to Republicans.

With an Obama presidency, the VAST majority of Americans will be better off. That’s about 99% of ALL people posting on Yahoo! Answers.

And yet they would rather their “team” wins than vote for what’s best for their finances.

Republicanism is a mental disease.

And yet again, the same talking points. Small business owners will not have their taxes raised. The taxes on people earning over $250k is PERSONAL taxes.

The cost of everything is through the roof now, and that’s after the Bush tax cuts FAILED to TRICKLE DOWN. Give it up Neocons, your boy McLoser will cost this country dearly.

John McCain is a Liar.

http://www.johnmccainrecord.com/mclobbyist/

Medicare Tax May Aid Health Compromise, Democrats Say

Jan. 5 (Bloomberg) — Two top Democrats said the U.S. House may accept a plan to increase Medicare payroll taxes on high-salary earners as a compromise to help get a health-care overhaul through Congress.

OMG!!! Barack Obama is a socialist! Keith olbermann comments

Government Will Dominate 2010 Agenda

Democrats in 2009 moved to vastly expand the size and scope of government. But with the public already souring on Washington, 2010 may see limits…

There are some common myths that are related to business process outsourcing. Some of the myths are completely untrue and have no direct effect on a nation’s economy. Read this article to know more about common BPO myths.

There are number of myths that are related to business process outsourcing. As the BPO firms have mushroomed across the globe a number of myths have been associated with it. In order to get the maximum benefits from BPO’s these myths have to be dispelled. Given below is the list of popular outsourcing myths

1. Americans are becoming unemployed: The fact is that more Americans are getting employed than ever before. According to the household survey of Americans there are about 1.9 million more Americans that are employed since the recession has started to cease. Today there are more than 138.3 million workers in the U.S economy. Therefore this myth is completely untrue.

2. Business process outsourcing excludes many discouraged workers: The fact is that, unemployment is reducing despite a surging workforce. The unemployment rate has been low at 5.6 percent and the workforce is growing. Now there are 2.03 million more people in the labor force. Therefore there has been no evidence of growing discouragement in a work place.

3. The growing number of call centers will lead to job losses: This is one of the common myth associated with outsourcing, in fact it has little impact and represents less than 1% of gross turn over. Over the past decade, the people in United States have lost an average of 7.71 million of job every quarter. This is one of the most alarming situations of jobs lost. This estimates that 3.3 million BPO jobs will be outsourced between the year 2000 and 2015. This means that only 0.71 percent of all jobs lost per quarter.

4. BPO jobs have led to economic freedom: This has led to free trade, free labor and free capital. This is necessary for new jobs and higher standards of living. The countries that adopt policies antithetical to outsourcing freedom and try to protect jobs from being outsourced tend to retard economic growth. This in return leads to fewer jobs.

5. Any job outsourced leads to a job lost: This is completely untrue as outsourcing means efficiency. It means getting better final output with lower cost inputs. This in return leads to lower price for all US firms and families. Lower prices directly leads to higher standards of living and more jobs in growing economy.

6. BPO is one-way street: In fact it works both ways. The number of jobs coming from other countries to US is increasing at faster rate than the jobs lost overseas. According to Organization for International Investment the number of manufacturing jobs insourced are higher than those outsourced by 82 percent. The insourced jobs were higher paying than those outsourced.

7. The manufacturing jobs in US are moving to poor nations: US alone is not losing its manufacturing jobs but even countries like China too. China has sharper decline and has lost 15 percent of its industrial jobs.

8. Only large companies benefit from outsourcing: This is not right all companies whether big or small benefit from outsourcing. As the cost decline every consumer benefits from outsourcing

9. US government should ban companies that outsource jobs: History says that protectionism is isolationism and leads to failure. The proposal to punish business houses that outsource jobs, change in tax rules, and introduction of high tariffs will lead to unintended consequences. Such measures would injure US firms that export goods and services and erode the growth of US economy.

10. BPO’s just make and receive calls: This is not true because a call center has different motive altogether. It is set with a purpose to provide customer service which in return helps a company to gain maximum profits.

These are some of the common BPO myths. Due to economic meltdown the negative impact of business process outsourcing has already been exaggerated. Therefore the benefits of outsourcing have to be brought in the front line.

Wall Street: Stocks end flat following mixed economic reports

The stock market has been rising for 10 months on signs that the economy is recovering but analysts say stronger signs of growth will be needed to feed its advance in 2010.

Capital Gains and Dividends Tax Relief

Question: Does New York City have a Capital Gains Tax?

I moved from Dallas (no income taxes of any form city/state) to Upper East Side and I am reading up on taxes here. I knew they were high but I am stunned to see that New York state taxes capital gains at a cool 6.85% and even more amazing New York City seems to do the same at something like 3.6% from what I gather, I would be amazed if NYC was doing this does anyone know?

Answer: A year ago, when a 10 percent capital-gains tax on New York City real-estate transactions was in effect, the board appealed to the Koch administration, arguing that such a tax was an unnecessarily complicated way to raise revenue from the real-estate sector and proposing instead a higher mortgage and property-transfer tax. That tax was repealed and the higher transfer tax adopted, but then, with the election of Mario M. Cuomo as Governor, the capital-gains tax was readopted for the entire state.

See “Easing the Pain of Capital-Gains Tax” by Dee Wedemeyer, The New York Times, July 18th, 2008 at:

http://query.nytimes.com/gst/fullpage.html?res=9806EEDE1339F937A15754C0A965948260

EDITOR’S NOTE

The biggest news in the U.S. capital markets in the second quarter 2010 was the conference agreement on the Dodd-Frank Wall Street Reform and Consumer Protection Act (the “Dodd- Frank Act”). The Dodd-Frank Act passed the U.S. House of Representatives on June 30, 2010, and passed the Senate on July 15, 2010. While tax had little to do with the Dodd-Frank Act, the Dodd-Frank Act will have an …

Tax Fairness

Question: Is it possible to roll capital gains into purchase of next property to avoid tax?

We are considering selling our house that we have owned for less than 2 years, so we don’t automatically qualify for the Capital Gains Exemption. If we roll the gains from the sale of our house into the purchase of another house, do we still have to pay Capital Gains Tax? Specifically, if our net gain is $50k and we applied that to the down payment of our next property, do we still pay capital gains tax? If not, is there any other way to avoid capital gains tax?
Are you sure about the $500k exemption? We have lived there for less than 2 years so it is my understanding that the exemption doesn’t apply. I want to believe the first answer, but I can’t find anything online that says that I can roll it into our next house to avoid the tax. Instead, everything that I read says that that portion of the law has been repealed.

Answer: The new ruling gives exemptions to the capital gains tax for reasons such as health issues, unforseen circumstances, change in employment, etc. If you have what the IRS would consider a good reason to sell your home before you meet the two year mark, you may avoid the capital gain.

After reading your additional information:
There is no longer any roll-over of gains. But there are all the exclusions of gains if you have lived there less than the two years and qualify under one of the IRS defined “unforseen circumstances”.

Color Montana purple politically

HELENA — Montana politics have switched dramatically over the decade — at least in the top offices.

capital gains