5 Things You Should Know About Capital Gains Tax
This is the time of year many start thinking about preparing for and organizing our tax stuff. I found this article from a TurboTax Expert online and thought I’d share the main points as a good reminder. You can read the whole article here for all the details.
Overview: A capital gain occurs when you sell something for more than you spent to acquire it. This happens a lot with investments, but it also applies to personal property, such as a car. Every taxpayer should understand these basic facts about capital gains taxes:
- Capital gains aren’t just for rich people
- In most cases, your home has an exemption
- Length of ownership matters
- Capital losses can offset capital gains
- Business income isn’t a capital gain
As always, I’m here to help on real estate matters, but thought this article may be of interest. If you need help on capital gains or other tax issues, please consult the appropriate professional.
