Capital Gains On Real Estate Sale 2008
I am in a modest income bracket (~30K) and contemplate selling a property in 2008 worth about 350K. What can I expect my capital gains rate to be?
I am in a modest income bracket (~30K) and contemplate selling a property in 2008 worth about 350K. What can I expect my capital gains rate to be?
its what ever your tax bracket could be 15-28 maybe 36% if you make more that 80K "I think not sure" then 28% plus add your state tax rate, in NC its about 8% second highest in the country.
good luck
My understanding is that if you are in the 15% tax bracket next year your long term capital gains rate will be a big 0%!
Chris
Capital gains tax does not get clumped in with your other income. It is a maximum of 15%. So you will pay your normal tax rate for teh $30,000, and 15% or less for your capital gains of $350,000.
15% is if its a long term capital gain holding it for more than a year. short tem (less than a year) means you make 30 K but your captial gain is gonna be added to that and all (the total) will be taxed as an ordinary income what ever tax bracket that puts you in, as I understand it and the way it has been done with my capital gains, ask an accountant to make sure
My understanding is that capital gains do not dictate your tax bracket- but I would not consider this a "reliable" answer. Have you tried asking the IRS?
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Long term- property held for over a year, bought for investment purposes (ideally rented out).
Short term- property held for less than a year, or purchased with the intent of immediate resale, however long it actually took ("inventory"
Again- my understanding. I am going to move this into the tax matters forum, where you will get better answers.
Chris
This is beginning to clear up & my thanks to all. I now also fully see why my own accountant could not give a reliable answer.
First, you should decide what your long-term objective is going to be. Are you going to reinvest? Have you looked into other income tax strategies.
[addsig]
I have considered other strategies. The property to be sold is in France, and it might make sense to take out a mortgage there, bring money here to invest in some dependable way.
in 2008 if capital gains tax is 0% for that bracket..... how much tax does the state take ???? im in ct
Plan a 1031 exchange.
I know of a free website where you can plug in the figures and play with the outcome, let me know if you would like me to send you the link.
sure hope your right...but there is no guarantee that the Republicans will retain the Presidency...when Clinton took office he retroacted a tax increase going back to the year before he took office...so nothing is sacred...I remember well ...it cost me ...regards, CWal
Thank you, NewKid, once again, for clarifying with excellent examples these tax specifics that any investor needs to know... And thanks for the answer on my 1031 ? in another posting. CS
The Bush family is focused on investment in government regulated industries. If this is the leader of our only hope for free enterprise, we are in more serious trouble than I thought...
Chris
Put whatever names on it you want. Quote whatever soundbits you can...
But unless the gap between the haves and the have nots begins to close instead of widen, that paddle is drifting further away down the brown creek. Every corporate mentality knows you have to keep the workers happy to optimize production.
Or shall we let them eat cake?
Jim
i smell a union koolaid amongst us...regards, CWal
thanks jim...you had me worried...I like all your contributions to the threads...keep up the good work...regards, CWal
FYI - there are plenty of haves and have nots in socialism and communism.
Oh, oh!
[quote]
On 2007-03-21 11:04, jgsimmons wrote:
. The property to be sold is in France...,
Is it possible the French will want some of those gains?
is it possible the French will want some of those gains?
The answer is no, because the property was purchased long ago. But the French will advise the US that the property has been sold, and the amount, as I understand it, in accord with a mutual tax treaty