How to Help Clients Defer Capital Gains on Their Investment Real Estate
Over the last few years, real estate properties have greatly appreciated. For any of your clients looking to sell, it can mean a nice profit. But with a nice profit comes a not-so-nice tax bill.
Can You Deduct Realtor Fees From Capital Gains?
We’ve written a great deal about the concept of capital gains. We’ve explained what they are, and when they might trigger a taxable event. Though many of Realized’s previous blogs focus on capital gains when selling investment real estate or other capital assets, it’s also possible to generate capital gains from the sale of your primary residence or home.
Do Capital Gains Count Toward Your Income Bracket?
Capital gains can have tax benefits over regular income, specifically long-term capital gains. That’s because long-term capital gains have a lower tax rate than regular income and short-term capital gains, which are also taxed at the regular income tax rate.
What Are Examples of Capital Losses?
Capital losses can decrease income, which ultimately can decrease your tax bill. The gain is reduced when a capital loss is applied to a capital gain. When the gain is less than the capital loss, it can result in an overall capital loss. This loss can then be applied to other income.
Do Small Businesses Pay Capital Gains?
Taxes in the United States have a long and volatile history. The authority to impose Federal income taxes originates in the 16th Amendment to the U.S. Constitution, ratified in 1913. Congress set the first income taxes that same year, along with the first taxes on profits. In 1921, Congress established the distinction between short- and long-term capital gains in the Revenue Act of 1921.
Are Capital Gains Considered Income for Medicare?
Congress added Medicare health insurance to Social Security benefits in 1965. The original provisions offered coverage to people aged 65 and older, plus some younger individuals with disabilities. There are currently other eligible groups, which have been added over time.
