Capital gains are profits that from capital assets stocks, bonds or real estate. A capital gains tax can be levied on these profits. Find helpful articles, videos, blog posts and radio shows about capital gains and the types of transactions that involve capital gains.
How do I avoid capital gains tax on the sale of a second home? This reader sold their second home and wants to know how to reduce capital gains tax. Q: I sold my second home last year. I had owned that home for many years. I bought a new one at a higher price. [...]
How to avoid paying capital gains tax on inherited property. Minimize the potential tax consequences of transferring property from parent to child. Q: I have a question about a recent answer you gave to a reader. The question relates to a daughter that acquired her share of the home from her mom while her mom [...]
How are capital losses deducted? This reader wants to know how to go about claiming long-term capital losses on income taxes. Q: My wife and I sold two adjacent properties via quit claim deeds this year. We originally bought the properties in 1994 for $20,000, ($10,000 each) as an investment. We thought we’d build rentals [...]
How capital gains tax on the sale of a property held in a trust works. This reader wants to know if they can claim a capital loss on the sale. Q: I enjoyed your column in the Washington Post. I am trustee of my father's trust. Upon his death, his 50 percent interest in the [...]
How do I get rid of PMI on my mortgage? What can you do if you don’t want to pay private mortgage insurance on your mortgage loan? Q: I appreciate your articles and landed on your site after reading your article on prepaying your mortgage. I have a question for you about mortgage loans, private [...]
What's the best way to pass a second home on to heirs? If you don't want to pay capital gains tax on a sale or a gift tax you should give your heirs an ownership share of the home gradually. If you give an amount of the real estate investment equal to the amount that's not subject to gift tax you can avoid gift tax. Right now you can give people up to $13,000 a year tax-free. That protects everyone from paying capital gains tax or gift tax on this real estate investment.
Can investing in exchange-traded funds, or ETFs, help you with taxes? ETFs are often based on a stock or another index and so are not actively managed. With passive management, an ETF has less trading activity, so there are fewer taxable events. ETF investors benefit from this approach because they may pay fewer taxes.
A home seller asks about paying capital gains tax on a home sale. The home seller thinks she and her husband may be exempt from paying capital gains tax. She is thinking of an old IRS rule. Now, the home seller will have to pay capital gains tax, although less if she's lived there two of the last five years.
You may not owe any taxes on inheritance. When you inherit property, you inherit the property at its value at the time the person died. Generally, if you sell it within a year of the owner's death, the IRS views the property's value as of the day of death as the same as the day it sells. Because real estate can be hard to value, the amount received at the sale of the property if it was close to the person's date of death would be viewed as the value of the property at the time of the death.