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Cap gains are up this year. No more 15% treatment (including qualified dividends) and no more 0% for those in the 15% or lower bracket. A lot of people are going to be surprised come April 15th.
Cap gains are up this year. No more 15% treatment (including qualified dividends) and no more 0% for those in the 15% or lower bracket. A lot of people are going to be surprised come April 15th.
What are the rates now? I haven't checked this year since I have no plans to sell anything this year.
I've never really gotten capital gains tax it has allways rubbed me the wrong way as the the government taxing good decisions.
Question: During the last presidential campaign, didn't Obama promise to lower capital gains taxes? How come we haven't seen anything on that front?
I have a rental I want to sell if and when the housing market improves and the way I understand it I am going to have to pay a lot more tax on it when the time comes in order to fund obamacare so I guess he lied again. :shock:
Question: During the last presidential campaign, didn't Obama promise to lower capital gains taxes? How come we haven't seen anything on that front?
Question: During the last presidential campaign, didn't Obama promise to lower capital gains taxes? How come we haven't seen anything on that front?
Capital gains tax. Yeah, gotta love that one. You buy a piece of undeveloped property in 1980. You sell it 20 years later for 20% more than you paid for it. You get taxed on that 20% even though in real dollars you actually lost money after inflation.
Yeah and they don't care if you take a loss but if you make a profit pay up.
Capital gains tax. Yeah, gotta love that one. You buy a piece of undeveloped property in 1980. You sell it 20 years later for 20% more than you paid for it. You get taxed on that 20% even though in real dollars you actually lost money after inflation.
Not how it works. You're taxed on the Gain, when it's taken. And the scenario you offered is an unlikely one, if purchased in 1980 and sold in 2000. Nominally, since saying inflation diminishing the initial investment portion, property values more than doubled over that period of time. Land that only appreciated by 20% was likely over-priced to begin with. (bad investment)
In fact, housing prices, even without the 2000-2009 Bubble, inflation adjusted, has an upward trajectory:
That is exactly how it works. You are taxed on the gains when you sell. If your gains aren't enough to cover the inflation that eroded the value, sorry about your luck. Don't get hung up on "real estate values". The example I gave illustrates one of the inequities of taxing capital gains. Your long term in segments are eroded by inflation and could actually be losses in real dollars and still taxed.
If I do get myself into a stupid investment paying future value to the tune of about 14 years, I deserve to take a hit; not that I'm that stupid. I'd get out and take the loss (reduce taxable income) far sooner than in 20 years.
That's some other discussion you need to have bragging about your financial wisdom. I'm just pointing out that gains over time are eroded by inflation and that's something people need to think about before they get their knickers in a twist because capital gains are taxed at lower rates than income.
Capital gains tax. Yeah, gotta love that one. You buy a piece of undeveloped property in 1980. You sell it 20 years later for 20% more than you paid for it. You get taxed on that 20% even though in real dollars you actually lost money after inflation.
That's some other discussion you need to have bragging about your financial wisdom. I'm just pointing out that gains over time are eroded by inflation and that's something people need to think about before they get their knickers in a twist because capital gains are taxed at lower rates than income.
Then don't invest. And your lala land anecdote, which contradicts what actually happened in the real estate market, might affect some dweeb somewhere. But to save that moron from his/her own stupidity, by lowering rates on all Gains is absurd.
Not how it works. You're taxed on the Gain, when it's taken. And the scenario you offered is an unlikely one, if purchased in 1980 and sold in 2000. Nominally, since saying inflation diminishing the initial investment portion, property values more than doubled over that period of time. Land that only appreciated by 20% was likely over-priced to begin with. (bad investment)
In fact, housing prices, even without the 2000-2009 Bubble, inflation adjusted, has an upward trajectory:
Your chart shows that from 1980 to 2000 the trend for inflation adjusted house prices increased by roughly 13% or .65% per year. Papa Bull was talking about a "gain" which would be the result of a 1% per year gain. What I believe he is getting at is that the average rate of inflation during that period was roughly 4.25% which means that if he purchased the property for $50k he would need to sell it 20 years later for $110k just to have kept up with inflation so if he actually sold it for $60k and paid capital gains on the $10k "gain" he actually missed out on $50k if the value of his property had actually increased at the same rate as overall inflation.
How about if we lower taxes on earned income and raise taxes on capital gains to the point where both are equal while eliminating all deductions and credits?
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