Question: I have just sold my house which I lived in for several years but I also rented it out for a period. Will I have to pay Capital Gains Tax as a result? Answer:You may be liable to pay Capital Gains Tax when you sell or dispose of an asset for a profit. Disposal of an asset for Capital Gains Tax purposes includes selling it, gifting it and swapping it.Generally speaking, the proceeds that you receive when selling your property (or the market value if it was a gift) less what you originally paid, the costs to sell and any capital improvements you have made, leaves you with a gain (if the figure is above £0) that may be liable to Capital Gains Tax.There are a number of allowances and reliefs that individuals may be entitled to in relation to Capital Gains Tax when selling property. One of these is Principal Private Residence Relief (PPR) which eliminates any Capital Gains Tax liability for the period that the seller lived in the property, assuming that it was their only main … [Read more...] about Advice on Capital Gains Tax
Capital gains tax
My sister and I inherited my mother’s house 13 years ago. To buy her share I paid my sister 50pc of the £110,000 value. My daughter lived there until replaced by my son three years ago. Now my husband and I have sold the house for £195,000. Will we need to pay capital gains tax on the proceeds? Also, we plan to buy another property for my son’s sole use. Should we put it in his name? LS, via email Your family has had good use from your late mother's house, but unfortunately, in this case, that has little bearing on your capital gains tax (CGT) bill. If you and your husband had been living in the property you would probably have qualified for Principal Private Residence Relief (PPR). This allows... To continue reading this article Start your free trial of Premium Access all Premium articles Subscriber-only events Cancel any time Free for 30 days then only £2 per week Try Premium Access one Premium … [Read more...] about Ask an Expert: do I have to pay capital gains tax on my ‘pass the parcel’ property?
By Ken Martin Published February 18, 2019 Taxes FOXBusiness Facebook Twitter Comments Print video Bill Gates says Ocasio-Cortez tax policy misses the mark Microsoft co-founder Bill Gates reacts to New York Rep. Alexandria Ocasio-Cortez’s tax policies. Bill Gates has recently been talking about the U.S. tax code and commenting on plans that politicians have put together to tax the wealthy. Continue Reading Below Gates says he is concerned about the high budget deficits being run by the U.S., and if taxes are increased to make up the shortfall then it’s appropriate for wealthy people to pay more. MORE FROM FOXBUSINESS.COM IF JOE BIDEN RUNS, HIS PRESIDENCY GOES THROUGH WALL STREET GM TAKES ORDERS FOR NEW E-BIKEBUT US CONSUNERS HAVE TO WAIT STUDENT-LOAN PAYMENT MAY SOON COME DIRECTLY OUT OF YOUR PAYCHECK “We only collect about 20 percent of GDP and we spend like 24 percent of GDP. So you can’t let … [Read more...] about Bill Gates favors higher capital gains taxes so wealthy pay more
I have a tax return question. I met my now husband in September 2005. We married in March 2008 at which point he transferred his private home into our joint names. He originally bought the property in 1987 and it was his only home for the intervening years before we met. We both lived in the house from March 2008 to July 2009 as our primary residence, and again between July 2012 and March 2015. We moved elsewhere and either let it or left it empty for other periods, before selling the property at the end of December 2017. Some Capital Gains Tax becomes due for me, I agree. But on what period? Property sale: Why is wife's capital gains tax bill 26 times the size of her husband's, though he owned the house much longer? (Stock image) My question is, am I considered to be liable for CGT from March 2008 when I first owned half the property, or from 1987 when my husband first bought it? My accountant advises the latter which does not make any sense at all to me. Why … [Read more...] about Help! My capital gains tax on house sale is £13k to my husband’s £485
Labor is going into the election promising to tax capital gains more heavily. Depending on who you listen to, it’ll either hit the very highest of earners, or middle earners – people such as teachers and nurses. The same critics have claimed different things at different times. The truth is even stranger. In part because people who present as being part of one income group are often better described as being part of another. It’s certainly stranger than fiction. What are capital gains? Capital gains are the profits made from buying something at one price and selling it at another. These profits are typically taxed at only half the rate of other income. (Technically, only half of each capital gain is taxed.) The discount, introduced by Prime Minister John Howard in late 1999, was sold as ensuring that profit takers wouldn’t be taxed on the workings of inflation, a concession that was already built into the system, although in a more complicated way. But because … [Read more...] about Low income earners in Australia pay a surprising level of capital gain tax