How is capital gains calculated on sale of property?

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Amar Realtor : Top Best Realtors | Bay Area | South Bay | East Bay | Peninsula | Jul 24, 2022

When you sell property, such as a stock, bond, or piece of real estate, you may have to pay capital gains taxes on your profits. How much tax you owe depends on a number of factors, including how long you held the property and what kind of property it is. For most assets, you'll pay taxes at your ordinary income tax rate. However, there are some exceptions. For example, if you sell a stock that you've held for more than a year, you'll pay the long-term capital gains tax rate, which is lower than your ordinary income tax rate. The exact amount of tax you'll owe also depends on your tax bracket. In general, the higher your income, the higher your capital gains tax rate will be. However, there are some exceptions for low-income taxpayers. Finally, keep in mind that you may be able to deduct some of your capital losses from your capital gains. This can help to lower your overall tax bill.

Amar Realtor : Top Best Realtors | Bay Area | South Bay | East Bay | Peninsula | Jul 24, 2022

When you sell a capital asset, such as a house, you may have to pay taxes on the resulting capital gain. The amount of tax you owe depends on a number of factors, including the selling price of the house, the original purchase price and the length of time you owned the property. To calculate your capital gain, you first need to determine your "cost basis." This is usually the original purchase price of the property, plus any major improvements that you made during your ownership. Once you have your cost basis, you can subtract it from the selling price to determine your capital gain. For example, if you sell your house for $200,000 and your cost basis is $150,000, your capital gain would be $50,000. Capital gains are typically taxed at a lower rate than ordinary income, but the exact amount will depend on your individual tax situation.

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