Home     Forum     401k     401k Rollovers     Crypto Forum
    Register   Login   Members   Search   FAQs     Recent Posts    



Is capital gain tax charged?

Reply to topic
Money Talk > Taxes

Author Thread
ukrkoz
Contributing Member


Cash: $ 10.65

Posts: 49
Joined: 04 Nov 2010
Location: seattle
Is capital gain tax charged?  Reply with quote  

Hi all

Is capital gain tax charged if ALL proceeds from a property sale are rolled into a new, larger mortgage? As in - property is paid for, new mortgage assumed for a larger property, current property sold, all $$ rolled into the new mortgage.
Thank you
Post Sat Jun 07, 2014 1:41 am
 View user's profile Send private message
braje
Member


Cash: $ 4.60

Posts: 22
Joined: 09 Jul 2011
Location: Anchorage AK
 Reply with quote  

Is this your primary residence? If so gains up to 250000 for single and 500000 for mfj are not taxed
Post Mon Jun 16, 2014 7:07 am
 View user's profile Send private message
braje
Member


Cash: $ 4.60

Posts: 22
Joined: 09 Jul 2011
Location: Anchorage AK
 Reply with quote  

Is this your primary residence? If so gains up to 250000 for single and 500000 for mfj are not taxed
Post Mon Jun 16, 2014 7:07 am
 View user's profile Send private message
Wino
Senior Member


Cash: $ 113.80

Posts: 560
Joined: 03 Aug 2012
Location: Dubai
 Reply with quote  

First off, you must figure your capital gains. For instance, let's say you bought a primary residence for $100K. You made $20K in improvements, and you sold it AT LEAST 2 years later for $200K. You have a capital gain of $80K (200 - 100 - 20).

You must invest that $80K in another primary residence within 2 years (three years if you're building a new place). The original $120K is already taxed, and does not count as a capital gain, because it is merely replacing your already-spent capital. You can do whatever you want with that amount.

Any amount you DON'T reinvest in a home (of the $80K gain) is subject to long-term capital gains, which is at 15% this year.

Hope this helps.
Post Mon Jun 16, 2014 5:12 pm
 View user's profile Send private message
Wino
Senior Member


Cash: $ 113.80

Posts: 560
Joined: 03 Aug 2012
Location: Dubai
 Reply with quote  

The exemptions mentioned earlier are lifetime exemptions. They should be used late in life when you downsize for the final time, and not early just to avoid the 15% rate. Chances are, your regular income tax rate is higher than the capital gains rate.

Keep reinvesting the profits until near retirement, at which time you downsize and take the exemption.
Post Tue Jun 17, 2014 5:13 pm
 View user's profile Send private message
blixet
Preferred Member


Cash: $ 32.55

Posts: 156
Joined: 28 Apr 2013
Location: Southern California
 Reply with quote  

You don't have to buy another home with the proceeds of the sale and there is no limit on the number of times that the exclusion can be used as long as you meet the qualifying criteria.

See: http://www.irs.gov/pub/irs-pdf/p523.pdf

Information is more valuable sold than used – Fischer Black
Post Tue Jun 17, 2014 11:00 pm
 View user's profile Send private message
Wino
Senior Member


Cash: $ 113.80

Posts: 560
Joined: 03 Aug 2012
Location: Dubai
 Reply with quote  

quote:
Originally posted by blixet
You don't have to buy another home with the proceeds of the sale and there is no limit on the number of times that the exclusion can be used as long as you meet the qualifying criteria.

See: http://www.irs.gov/pub/irs-pdf/p523.pdf

I stand corrected. Thanks, blixet.
Post Wed Jun 18, 2014 5:09 am
 View user's profile Send private message
Bradford
Member


Cash: $ 3.25

Posts: 15
Joined: 23 Feb 2015

 Reply with quote  

Capital gains tax?
Can anyone tell me what rate capital gains tax is charged in percentage in the UK?

Also is this example liable for capital gains tax?

Our house is valued at £115,000 but sells for £130,000?
Post Fri Mar 13, 2015 5:26 pm
 View user's profile Send private message
oldguy
Senior Member


Cash: $ 751.85

Posts: 3656
Joined: 21 May 2006
Location: arizona
 Reply with quote  

ukrkoz - to further clarify, the mortgage doesn't come into play.
Post Fri Mar 13, 2015 5:38 pm
 View user's profile Send private message
losangelescpa
Member


Cash: $ 2.00

Posts: 10
Joined: 05 Jan 2015
Location: USA
 Reply with quote  

Capital Gains Tax is a tax on the profit when you sell (or ‘dispose of’) something (an ‘asset’) that’s increased in value.Capital gains are profits from the sale of a capital asset, such as shares of corporate stock, a business, a parcel of land, or a piece of art. Capital gains are generally included in taxable income but are often taxed at a lower rate; under current law, for example, most long-term capital gains face a top rate of 15 percent. Complicated rules impose a range of tax rates on different kinds of gains and can make it difficult for taxpayers to calculate their tax liability. It’s the gain you make that’s taxed, not the amount of money you receive.
Post Thu Mar 19, 2015 11:29 am
 View user's profile Send private message

Goto page 1, 2  Next
Reply to topic
Forum Jump:
Jump to:  
  Display posts from previous:      


Money Talk © 2003-2022

Crypto Prices