What is the Capital Gains Exclusion?
The capital gains exclusion is an IRS tax provision that allows you to exclude a certain amount of your capital gains from your taxable income. For example, if you have a capital gain of $10,000, you can exclude $3,000 of it from your taxable income.
Capital gain on a home sale is the difference between the selling price of your home and the original purchase price, plus any improvements you made to the home. The capital gains tax on your home can have a big effect on how much profit you ultimately bring in from selling your home and/or property.… Read the rest
Year in and year out, as a business owner, you pay taxes on what’s called “ordinary income”. When you sell your business, the tax on the increased value of your business is called capital gains tax. This article discusses the definition, calculation, and ways to minimize or eliminate capital gains taxes on the sale of a business.
What Are Capital Gains Taxes?
When you earn a salary, commissions or business income, you get taxes on the income as it is received.… Read the rest
Are you wondering if you’ll have to pay capital gains tax on your home sale?
Many people do not know that a large portion of homeowners who sell their homes can avoid capital gains tax on their home sales.
How Much is Capital Gains Tax on the Sale of a Home?
When selling your primary home, you can make up to $250,000 in profit or double that if you are married, and you won’t owe anything for capital gains. The only time you will have to pay capital gains tax on a home sale is if you are over the limit.… Read the rest
If you are in the process of going through your taxes, it’s time to understand your own taxes. Even if you have a tax professional doing your taxes, it’s still great to organize your files and know what you will owe.
Let’s look at how you should divide up your income and see if you have capital gains or losses to report this year.
IRS Taxable Income Types
Currently, the IRS allows you to report your income in two taxable brackets that include capital and ordinary.… Read the rest