The Capital Gains Blog

United Insurance Holdings Corp. Reports 2009 Fourth Quarter and Year-End Financial Results

ST. PETERSBURG, Fla.—-United Insurance Holdings Corp. , a property and casualty insurance holding company, today reported its financial results for the fourth quarter and for the year ended December 31, 2009.

QUICK POLL

What Financing? Those who follow Chinese astrology know that this is the Year of the Tiger, the proverbial king of the jungle admired for its vivid stripes that symbolize the balanced forces of yin and yang.

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

Question: Capital Gains Tax on property?

Hi, I’ve got a question regarding UK capital gains tax – I am the sole owner of a house, which is my current permanent residence. My mum and my grandmother also live at the property, and they pay a rent to cover 100% of the mortgage. The property is never in profit – their contribution covers the mortgage, and is declared on my tax return. My question is, in future, will there be a capital gains tax liability on the property when I come to sell it? I heard from a friend that the rules on renting to more than one ‘tenant’ become complicated with regards to capital gains tax, so any advice would be appreciated! Obviously, being family, we haven’t got any official contract drawn up between us. It’s an informal arrangement as such. What I’m also keen to find out is if the situation changes should I buy a second property for myself to live in (and declare as my permanent residence). If you require any other info to advise in this matter please let me know and I’ll add a further comment!

Answer: Family don’t count if they are living with you. It’s not rent they pay you it’s a contribution for utilities etc.

You may also be interested to know that you can have a lodger in your home and receive circa £4000(approx) rent which is allowed tax free, see the link below

Taxman using Land Registry to nail tax dodgers

Kevin Reed, Accountancy Age , Monday 22 March 2010 at 10:18:00 Buy-to-Let landlords and those selling a second property targeted by HMRC Land Registry details are being used by the taxman to track down tax dodgers. UHY Hacker Young has warned buy-to-let landlords and people selling off second properties that HM Revenue & Customs is using Land Registry details to match up against those failing to …

Question: How can we estimate our state income tax for April 15 when we don’t know whether we will be liable for taxes ?

only way that we would actually pay state income tax is if at the end of the year we have a significantly amount of capital gains. Generally we cannot know this until we receive the capital gain information at the end of the year. We are both retired and our retirement income is not taxable. Ordinarily we would be liable to pay Pennsylvania State Tax in Estimated Payments.

Answer: Use last year’s numbers.

FACTBOX – Major tax provisions in U.S. healthcare bill

The U.S. healthcare overhaul that President Barack Obama is expected to sign into law contains about $438 billion in revenue increases over the next decade.

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