The Capital Gains Blog

Posts Tagged ‘taxes’

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: How are Capital Gains treated in a Traditional IRA if one waits until age 59.5 (or later) to make withdrawls?

Imagine two people starting starting with 2,000 pre-tax dollars to invest at age twenty-five. The tax rate is a constant 25 %, and the capital gains rate is constantly 15 %.One person invests in the ROTH IRA (for 1,500 dollars because of the tax), and one invests in the Traditional IRA. If the annual rate of return for each investor is 8%, who does better in the end if retirement is age 70, exactly 45 years later?

Answer: That’s an interesting scenario. Using my retirement calculator, the traditional IRA would have the largest absolute value at retirement. But the annual payout would be the same either way. The specific amount varies depending on assumed life expectancy, but it stays the same for both IRAs.

Note that Capital Gains Tax is irrelevant. The Roth payout is tax free and the traditional payout is taxed at ordinary income rates.

Greenspan: Rising Treasury yields may signal interest-rate gains

Former Federal Reserve Chairman Alan Greenspan said the recent rise in Treasury yields represents a “canary in the mine” that may signal further gains in interest rates.

Budget 2010 predictions: Is there a future for pensions as we know them?

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: If you are a small business owner and you know that Obama is going to raise your taxes ?

and you know who in your work place is his big supporters, how hard will it be for you to decide who to lay off after the burdens of higher payroll taxes, forced insurance coverage, higher Capital Gains Tax, higher energy cost due to his misguided goal of crippling our use of coal and other natural resources, all working together to give even a more unfair advantage to your overseas competition.

We know it will happen, so how hard will it be for you to decide who gets the pick slip

Answer: It really would not be that hard. The problem is that you cannot fire someone based upon their political beliefs and solely for that reason. You also have to be careful when laying people off. If you could get rid of all the Obama supporters and have a legitimate reason other than politics it really would not be that hard. The other option is make life hard on certain individuals by cutting their hours and the like to force them to get a new job and leave your business.

All these ideas are shady at best but it is possible if you work it right. If nothing else if Obama is elected they will be taken care of because of the higher taxes all of us will pay (I know you are saying Obama is going to cut taxes but lets all get real and know that will not and cannot happen if this country is going to stay afloat with all of the programs he wants to create, if you do not believe me ask any economist).

Business Lobbyists Push to Revive Estate Tax They Tried to Kill

March 8 (Bloomberg) — Lobbyists for small businesses, construction companies, manufacturers and other trade groups are racing the clock to convince Congress to reinstate the federal estate tax they’ve fought for years to abolish.

Question: Capital Gains Tax on Stock proceeds?

What is the percentage of taxes when you make a profit from selling stocks ? Is it a different rate than what your tax bracket is ? My wife and I are in the 33% tax bracket ? How do I avoid capital gains on a stock sale?

Answer: It will be determined by whether it is short-term (held less than one year) or long-term. If long-term the CG tax is maxed at 15%. Short-term you pay at your regular rate (33%).

Hexion Specialty Chemicals Reports Fourth Quarter and Fiscal Year 2009 Results

COLUMBUS, Ohio—-Hexion Specialty Chemicals, Inc., today reported its results for the fourth quarter and year ended December 31, 2009. Results for the fourth quarter of 2009 include: Revenues of $1.09 billion in the fourth quarter of 2009 compared to $1.18 billion during the prior year period as the sales decline reflected the contractual pass through of lower raw material prices, which more …