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REAL ESTATE SECRETS ON CAPITAL GAINS!
Tax Facts About Capital Gains and Losses IRS
You may feel uncertain about what a capital gains tax is and how real estate capital gains
taxes are figured. Once you know more about how these taxes affect your bottom line, you
will feel more confident in making the best decision for your investments. Think about real
estate capital gains taxes in terms of buying and selling stock. Once you have sold a stock,
you then must pay taxes on the difference between the amount you paid for the stock and the
amount you received from the sale of the stock. When you sell real estate, the same principle
applies, although there are some circumstances that change the application of the tax.
To decide what your capital gain is, the first step is to write down the purchase price of the
home. The term “purchase price” refers to the actual sale price of the home, regardless of
the amount that you contributed at the closing table. You can then find out what your
adjustments will be based on the cost of the purchase, the cost of the sale, and the cost of
improvements.
When you determine the total cost of the purchase, you should also include any attorney or
transfer fees you incurred during the purchase, as well as the cost for any inspections. Be
aware that you can’t count any points that you may have paid on your mortgage when you
figure the cost of the purchase.
The cost of the sale includes the inspection and attorney’s fees, as well as the real estate
commission and any money you invested in making improvements to your home to increase
the value before you sold it.
Any improvements such as the addition of a pool or deck, or any extra rooms that have been
added, should be totaled. Exceptions here would be anything you repaired or replaced that
already existed within the property before. Installing a new air-conditioning unit, for example,
would not be able to be counted toward the cost of improvements.
The next step in figuring your capital gain is to add the total of all three types of adjustments
to the purchase price. You will then need to subtract the newly totaled costs from the amount
that you receive for your home when it sells. This is your capital gain.
There are some exemptions that you are eligible for if you have lived in the home as your
main dwelling for two out of the previous five years, have not sold or traded another home for
the two years prior, and meet criteria termed by the IRS as “unforeseen circumstances.”
These circumstances include losing your job, getting a divorce, or experiencing a family
medical emergency. Calculating your real estate capital gains is relatively easy, but if you
have any questions, you may want to seek the advice of a real estate tax professional or
attorney.
LONG-TERM CAPITAL GAINS
As an investor in real estate, you need to know exactly what the tax policies are so that you
can make the most profit from your investment. Learning how to calculate your long-term
capital gains will reduce any unseen costs during the process of your real estate sale. You
probably already realize that your capital gains taxes are calculated by taking into
consideration all of the costs that you accrued during the purchase, along with any
improvements that you made, and then subtracting the expenses from your pay-out upon
sale. What you may not have recognized is that capital gains are taxed differently if your
investment qualifies as a short-term investment as opposed to a long-term investment.
For IRS taxing purposes, a short-term investment is the label applied to investments with a
holding period of less than one year. The capital gains tax rates applied to these short-term
investments equal normal income tax rates. On the other hand, real estate investments with
a holding period of longer than one year qualify as long-term investments. Long-term
investments receive a discounted tax rate which, depending on your marginal tax bracket, is
either 5 percent or 15 percent.
To figure out the holding period for your investment for the purpose of determining short- or
long-term capital gains taxes, use the date you bought the property and the date you sold the
property. Keep in mind that a holding period of exactly one year or less is considered a
short-term investment. Savvy investors that plan their investment activities to reduce their
taxes as much as possible may delay the sale of a profitable investment until that investment
qualifies for the reduced tax rate granted to long-term capital gains.
Long-term capital gains can also be assigned different tax rates depending on the type of
asset at hand. Real estate investments have their own policies and exemptions, as an
example of one type of long-term investment. So when you plan your real estate investing
strategy, make sure that you are knowledgeable about the taxes you will be required to pay
and how to keep as much money as possible. When in doubt, consult a tax professional to
help you minimize the amount of capital gains taxes required. This has the potential of saving
you a lot of money.
THE LATEST CAPITAL GAINS TAX RATES
Knowing more about capital gains tax rates is not as complicated as you may think. In
reality, the guidelines are really quite easy. Capital gains tax rates are paid by people
(individuals and trustees), who have made a profit on their investments for the year.
Companies, in this case, pay a “corporate tax” instead of the capital gains tax.
Anybody who has a capital gain should report it on their tax return. Any amount owed the
Internal Revenue Service will be payable by April 15 of the subsequent year.
In the United States, people pay tax on the total net gain of their capital investments and
capital gains are usually taxed at a more favorable rate than regular income. This is
intended to provide incentive for investors to make capital investments and to help finance
economic activity. The taxed rate in turn depends on the investor’s tax bracket.
Short-term capital gains are taxed at the investor’s normal income tax rate, and are
described as investments held for a year or less. Long-term capital gains include
investments held over one year and are taxed at a lesser rate than the short-term gains.
In 2003, the capital gains tax rate was decreased to 15 percent and then to 5 percent for
people in the lowest two income brackets. These 5 percent tax rates will be in effect
through 2011; if the tax cut is not extended at that time, the rate will return to rate of 2003,
which was 20 percent.
The 15 percent tax rate on capital gains, formerly scheduled to terminate in 2008, was
extended through 2010 as a result of the Tax Reconciliation Act, which passed in 2006.
This Tax Act carries the following additional implications:
In 2008, 2009, and 2010, the tax rate on entitled dividends and continuous capital gains will
be zero percent for people in the 10 percent and 15 percent income tax brackets.
After 2010, dividends will be taxed at the taxpayer's normal income tax rate, regardless of
tax bracket.
After 2010, the continuous capital gains tax rate will go to 20 percent (currently at 10
percent for taxpayers in the 15 percent tax bracket).
After 2010, the 18 percent capital gains tax rate on investments held at least five years (8
percent for taxpayers within the 15 percent tax bracket) will be reinstated.
So these favorable capital gains tax rates will remain in effect for a while yet, which is good
news for investors!
WHAT GUIDELINES ARE REQUIRED FOR A
MORTGAGE LOAN?
Mortgages are used by individuals and
businesses wishing to make large value
purchase of real estate without payment
the entire value of the purchase up front.
Mortgages are also known as lien against
property, or claims on property. Mortgage
is a legal agreement that creates an
interest in a real estate property between
borrower and the lender.
HOW TO UNDERSTAND THE HOME LOAN
PROCESS?
Understand that in order to finance or
refinance a loan the lender requires
documentation to verify and substantiate
your employment, credit and financial
situation to assure its investors
that you have the ability to repay the
MONEY.
MORTGAGE HOUSE: HOW AND WHERE
TO FIND MONEY TO BUY A PROPERTY?
Financing your real estate investment;
easy Steps, Fast & Simple.
PRE-QUALIFICATION: The first step, and
most important step in buying a home: Is
getting Pre-Qualify for a home loan.
MORTGAGE CALCULATOR: EASY WAY TO
CALCULATE MORTGAGES
This calculator is intended solely for
general information and educational
purposes. It is not intend in any way as
financial, securities,insurance,taxes or
legal advice or as a solicitation for any
financial..
Federal Housing Administration {FHA}
Mortgage Loan Programs Information
Center.
Housing Finance Authority of Miami dade,
Monroe, Broward, and Palm Beach County
HOME REFINANCING: 10 GREAT
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VIEW A SAMPLE OF A MORTGAGE
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Subprime Mortgage
 A type of mortgage that is normally
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SOCIAL SECURITY; THE ULTIMATE RETIREMENT GUIDE.
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ESTATE PLANNING: Estate planning, is it really the
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Capital gains tax, Understanding Capital Gains Taxes, Real Estate Capital Gains Tax: What You Owe After Selling Your Home
IF YOU NEED HELP TO SELL YOUR REAL ESTATE PROPERTY IN SOUTH FLORIDA; PLEASE CALL Mr. ANTONY A PROFESSIONAL REALTOR. AT: 786-709-6577 -- Fortune International Realty. --- CLIENTS COMPLETE SATISFACTION GUARANTEED.
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HOMES FOR SALE South Florida Real Estate Owners: Call Anthony At: 786-709-6577, SOUTH FLORIDA; CALL ANTONY A PROFESSIONAL REALTOR. AT: 786-709-6577 -- Fortune International Realty. --- CLIENTS COMPLETE SATISFACTION GUARANTEED ! --------------------
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Free Unlimited Calling, Local & Long-distance Free, Free 411 Information calls : Make Google Voice, Skype, Magicjack Work For You.-- Free Cable TV. -------------------KNOWLEDGEFINANCIAL.COM First, a little warning What I’m about to propose may be prohibited by your cell phone company. After all, they want to make as much money as possible from you. So make sure to check your cell provider’s terms of use before making this your full-time way of calling.
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But one Google product you might not be familiar with yet is Google Voice. The service gives you a free local phone number from which you can make and receive unlimited national calls without paying a dime (their international rates are also some of the lowest I’ve seen).
FREE Good Stuff / KNOWLEDGEFINANCIAL.COM Google has built up a reputation of giving things away for free. Their Google Docs tools essentially replace Microsoft Office (for free) --also free). Click here for a list of free Google services.--
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8. Free Unlimited Calling: Make Google Voice One of Your Five/Free But one Google product you might not be familiar with yet is Google Voice. The service gives you a free local phone number from which you can make and receive unlimited national calls without paying a dime (their international rates are also some of the lowest I’ve seen).
How does it work? Google forwards all calls it receives on your Google Voice phone number to any other phone number(s) you specify. This can be a land line, cell phone, or any combination of multiple numbers.---KNOWLEDGEFINANCIAL.COM
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KNOWLEDGEFINANCIAL.COM But here’s the killer feature… Google Voice lets you decide whether you want incoming calls to show the actual caller ID of the person calling you, or just your Google Voice phone number. So if you set things up right, every single call coming in from your new Google Voice phone number will look like it’s coming from only your Google Voice phone number.
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Request a Google Voice phone number from Google.
But since it’s a cool service, offers dirt cheap international calling, and provides you with a unified phone number that can ring all your phones (for free!), its probably worth the wait for your invite to come.m
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Free Unlimited Calling, Local & Long-distance Free, Free 411 Information calls : Make Google Voice, Skype, Magicjack Work For You.-- Free Cable TV.
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About Twitter Twitter is an easy way to keep up with the people, organizations, and events you care about - and to share your thoughts instantaneously. CLICK ON: Twitter-1 ----- Twitter-2 ------- Twitter-3
About Facebook-1... ANTONY'S PAGE-1... Millions of people use Facebook everyday to keep up with friends, Share Important Information, News, Events, links photos, and videos. About Facebook-2--- ANTHONY'S PAGE-2...
About Tagged, Connect with me on Tagged Create a community on tagged and you can share photos, journals and interests with your growing network of mutual friends! Click here to see how much you can accomplish...
''Business People, Professionals, Investors Connect to Linkedin- Link With me Now For Questions and Answers''--
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About Twitter Twitter is an easy way to keep up with the people, organizations, and events you care about - and to share your thoughts instantaneously. CLICK ON: Twitter-1 ----- Twitter-2 ------- Twitter-3
About Facebook-1... ANTONY'S PAGE-1... Millions of people use Facebook everyday to keep up with friends, Share Important Information, News, Events, links photos, and videos. About Facebook-2--- ANTHONY'S PAGE-2...
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FREE SCHOLARSHIP FOR SCHOOL
FREE GOVERNMENT GRANTS
MONEY FOR SCHOOL--
5. -Medical and Nursing
Resources for professionals in
the Medical & nursing industry-
Information on nursing, hospital,
Nursing News, Nursing Jobs,
Nurse Continuing Education,
Nursing Schools and Financial aid
information --
6. - Apply for unemployment,
Apply Food Stamps,
Find Jobs, Register a Business--
Have You Talked to a Primerica
Representative Lately? If not, Give
them a call..
Sout Florida #: 786-709-6577
--New Opportunities Are Only a Phone
Call Away.
Primerica is in the Business
of Changing Lives by Helping Families
Becoming Debt Free, Be Properly
Protected, and Financially
Independent. How?
South Florida,
Call a Representative
at: 786-709-6577 --
A JOB, OR A BUSINESS
OPPORTUNITY IS AVAILABLE FOR
YOU, YOUR FRIENDS, OR FAMILY
MEMBERS... IT'S FREE--
TO LEARN MORE: South Florida, JUST
CALL ANTHONY
AT: 786-709-6577
GET HIRED, START WORKING
IMMEDIATELY WITH
ONE OF THE GREATEST FINANCIAL
SERVICES COMPANY.
Have You Talked to a Primerica Representative Lately? If not, Give them a call.. Sout Florida #: 786-709-6577
--New Opportunities Are Only a Phone Call Away.
Primerica is in the Business of Changing Lives by Helping Families Becoming Debt Free, Be Properly Protected, and Financially Independent. How? South Florida, Call a Representative at: 786-709-6577 --
A JOB, OR A BUSINESS OPPORTUNITY IS AVAILABLE FOR YOU, YOUR FRIENDS, OR FAMILY MEMBERS... IT'S FREE--
TO LEARN MORE: South Florida, JUST CALL ANTHONY AT: 786-709-6577
GET HIRED, START WORKING IMMEDIATELY WITH ONE OF THE GREATEST FINANCIAL SERVICES COMPANY.
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