Welcome to tax law Guide
Definition Of Tax Law Article
. For a permanent link to this article, or to bookmark it for further reading, click here.
You may also listen to this article by using the following controls.
Understanding Capital Gains Tax Law
from:The term “capital gains” often brings fear to the mind of the taxpayer. The definition of a capital gain is simply any asset that is worth more when you sell it than when you bought it. According to capital gains tax law, we typically owe taxes on the difference between the price we paid and the price we sold the asset for. If we sell an asset for less than we paid for it, it’s called a capital loss, and the loss becomes a tax deduction. Capital gains can be realized on real property assets like real estate or on items like stocks and bonds.
According to capital gains tax law, however, there are times when we can avoid paying the capital gains tax, even if we made a profit when selling our asset. The most common way to avoid capital gains tax law is when selling real estate. Real estate is typically a very profitable investment; it hardly ever depreciates during the time you hold it. And, the IRS has made it easier for tax payers to invest in real estate without having to pay large taxes on real estate profits.
According to capital gains tax law, if you sell your primary residence, you are exempt from capital gains tax as long as your profit is not more than $250,000 if you’re single; twice that if you’re married. So, when you sell your home, you needn’t worry about capital gains taxes unless your profit is huge. And, if your profit is more than $250/500,000, you only pay capital gains tax on the amount over the $250/500,000.
If you own a piece of rental property that you’d like to sell, you can call it your primary residence according to capital gains tax law if you lived in it at least two out of the five years just prior to selling it. Many real estate investors use this clause to avoid ever paying capital gains taxes on real estate. They simply live in each of their rental properties for the last two years before they’re ready to put it on the market.
According to capital gains tax law, there is also a way to avoid paying capital gains tax on real estate that is not your primary residence without living in it. Simply invest the profits you made into another piece of real estate within two years and you don’t pay capital gains tax.
You’ll also pay capital gains tax on stocks that you sell if they’re worth more when you sell them than when you bought them. If you hold the stock for 5 years or more before you sell it, and your capital gains tax may be only 15%, however, as opposed to the 30% you’ll pay if you hold it less than 5 years.
If you have further questions about how capital gains tax law will affect you this year, consult your tax professional.
Definition Of Tax Law News
Basel's risk definitions open to interpretation in common-law countries - Risk.net
 Risk.net | Basel's risk definitions open to interpretation in common-law countries Risk.net And compliance risk is defined by Basel as “the risk of legal or regulatory sanctions, material financial loss, or loss to reputation a bank may suffer as a result of its failure to comply with laws, regulations, rules, related self-regulatory ... |
Speaker Boehner's strained definition of bipartisanship - Los Angeles Times
Speaker Boehner's strained definition of bipartisanship Los Angeles Times So too were six of the 11 pieces of the jobs package that the Senate endorsed and Obama signed into law. These include bills to eliminate a new tax-withholding requirement on small businesses, to impose countervailing duties on subsidized products from ... |
How Does Marital Status Affect Your Federal Taxes - Forbes
How Does Marital Status Affect Your Federal Taxes Forbes In the US tax code, hundreds of assumptions and provisions are based on the definition of marriage. And many more are found in federal entitlement programs, immigration laws and social benefits. A man and a woman living together outside of marriage are ... |
Will justices review how states treat veterans' disability pay? - StandardNet
 StandardNet | Will justices review how states treat veterans' disability pay? StandardNet His Washington DC attorney, Michael DJ Eisenberg, this month petitioned the Supreme Court to consider whether Title 38 US Code, Section 5301(a), which makes VA disability benefits immune “from taxation, claims of creditors, attachment, levy and seizure ... |
Gov. LePage signs anti-bullying bill into law - WGME
Gov. LePage signs anti-bullying bill into law WGME The anti-bullying bill builds on existing law by providing a clear definition of bullying, an explicit prohibition on bullying, discipline strategies and teacher training on how to address bullying. The signings include a bill that amends sex offender ... |