If you live or work in the United States you likely owe taxes to the Internal Revenue Service every year. While most everyone is familiar with their income tax obligation, there are a wide variety of other things that incur a tax obligation as well. Failing to understand your tax obligation is not an excuse with the IRS. Therefore, it pays to understand what is taxed and at what rate. Aside from income taxes, one tax obligation that you are likely to incur at some point during your lifetime is capital gains tax. Understanding what capital gains taxes are, when they apply, and at what rate they are taxed will help prevent you from incurring costly penalties from the IRS. Capital gains taxes are levied when you realize a gain from the sale of a capital asset. In general, a gain is realized when you sell an asset for more than you paid for it. For example, if you purchase real property three years ago for $100,000 and you sell it tomorrow for $150,000 you have realized a gain of $50,00
Posted on: Mon, 18 Nov 2013 06:45:45 +0000
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