Capital Gains

Is Farmland Exempt From Capital Gains Tax?

Do I Have to Pay Tax on Stocks If I Sell and Reinvest?

Earning returns is the primary motivation for investing in stocks. Investors may also seek income through dividends, among other goals, but typically buy stocks hoping the value will increase. Early investors in successful businesses can gain substantially by buying stock and selling it when the share price is high.

What is a Section 897 Capital Gain?

In 1980, Congress enacted the Foreign Investment in Real Property Tax Act (FIRPTA) to address concerns about increasing foreign land ownership in the US. The Act implemented a requirement for withholding taxes on foreign entities' sale of US properties. What’s interesting about the withholding requirement is that the property buyer is responsible for ensuring the amount is withheld and transferred to the IRS.

Can Net Operating Losses Offset Capital Gains?

Anytime your business’s losses and allowable deductions exceed its income for a given tax year, you’ll be left with a net operating loss (NOL).

Do I Have To Pay Capital Gains Tax If I Sell My House and Buy Another?

Selling your home and buying a new one is a significant financial decision for several reasons. For one thing, your home’s sale and your purchase of a new one represent sizable investments on your part. The second and more pressing reason is that this transaction may come with tax implications.

How Is Depreciation Recapture Calculated?

The IRS provides a nice tax benefit through annual depreciation for real estate investors. But as you might expect, what the IRS giveth, it also taketh away. This is also true for the depreciation deduction, but not immediately. You can continue taking the depreciation while owning the property, but once you decide to sell, the IRS will come knocking. In this article, we will walk through what depreciation is and how to calculate the corresponding depreciation recapture incurred at the time of sale.

Capital Gains Tax on Real Estate: What You Need To Know

The idea of capital gains tax can hamper the prospect of selling a property and gaining profit. Having to pay capital gains tax affects your net profit from selling the real estate property.

Who Pays Capital Gains Tax on a Deceased Estate?

Investors want to preserve and enhance the value of the assets they can distribute to their heirs. When a person dies, their assets typically enter probate for distribution. An asset's value is determined before disposition during probate. That's one reason why the step-up provision of capital gains taxation is an integral aspect of estate planning.

What Documents Do I Need for Capital Gains Tax?

As you probably know, the IRS recently received a significant funding boost from the Inflation Reduction Act. The IRS is hoping to increase the audit rate from its current sub-one percent performance, focusing on higher-income tax returns. Examining higher income returns makes sense, as does investigating returns with income from sources that aren’t easily verified. For example, the IRS reports that for ordinary wages and salary income, compliance with reporting and paying income tax is nearly perfect. In contrast, for income from harder-to-verify sources like small businesses, noncompliance may be as high as 55 percent.