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Do you have to pay capital gains tax on sale of your final home if you have previously owned several homes over several decades with cumulative gains that exceed current maximum exclusion amount?
Wiki User
∙ 14y ago
Yes, you are subject to capital gains tax on the gain on the sale of your principal residence that exceeds the maximum exclusion ($250,000 if Single / $500,000 if Married Filing Joint.)
The old rule allowed you to defer paying tax on a home sale by "buying up" and rolling the gain into the new residence. You do that by reducing the basis of the new residence. Note that the old rule was always intended as a deferral of tax, not a tax exclusion.
Because you were allowed to defer tax on prior sales, the basis of your current residence is likely low. This results in a large gain on sale that, unfortunately, may put you over the maximum exclusion. Note, however, you will only be taxed on the portion of gain that exceeds the maximum exclusion.
For example, if your gain is $600,000 and you file Married Filing Jointly, you will only be taxed on $100,000 of gain ($600,000 gain minus $500,000 exclusion.)
Wiki User
∙ 14y ago
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How do you determine the working capital of a business?
Working Capital is calculated as follows Working Capital = Current Assets - Current Liabilities Current Assets = 100000 Current Liabilities = 50000 Working Capital = 50000 (Answer)
How can one calculate the working capital ratio?
One can calculate the working capital ratio by: Totalling ones current assets and current liabilities, working capital is calculated by subtracting the current assets from current liabilities. The ratio is calculated by dividing the current assets by the current liabilities.
What is difference between gross working capital and net working capital?
Gross working capital is the amount company invested in current assets while net working capital is the difference between current assets and current liabilities.
Is gross working capital refers to the company's investment in current assets?
Gross Working Capital is the difference between the current assets and current liabilities where 'current' implies 'within one year' i.e Working Capital = Current Assets - Current Liabilities Working Capital is added to the Fixed Assets to get Net Fixed Assets of a company. i.e. Net Fixed Assets = Fixed Assets + Working Capital
What does working capital consist of?
current assets-current liabilities
Cumulative preference shares?
cumulative preference shares are those shares which get dividends for the current year and for the all previouse years if they were not paid due to the bad position of the compnay. suppose compay was suppose to pay dividends @ 10% every year to cumulative shares holders but could not pay fro two years due to bad financial position, and in the current year company is stable and willing to pay, so company will pay previouse + current year dividends to cumulative share holders, if it was non-cumulative share hoders compay would not pay all dividend, but it would pay only current year dividend. this is the difference between cumulative and non cumulative shares with respect to dividend payment. conculsion: cumulative gets all dividends if not paid earlier due to financail crises(previouse+ current) non cumulative gets only current dividend and not previouse dividend if not paid due to financial crises ( only current year dividend and all previouse are not paid)
What is non-cumulative perference share?
non cumulative shares are those shares which do not get previouse dividends due to company's bad financial position. for example, if they were suppose to get dividend @10% last year, but could not get due to bad financial position of the company, and in the current year company gets stable and is willing to pay dividend, so it will pay only current year dividends and not last year dividends... if it was cumulative share company would pay last year and current year dividend.. conclusion: non cumulative share doesnot get previouse dividends and cumulative share gets all dividends (previouse+ current) when compnay restores its good financial position.
What is non cumulative perference share?
non cumulative shares are those shares which do not get previouse dividends due to company's bad financial position. for example, if they were suppose to get dividend @10% last year, but could not get due to bad financial position of the company, and in the current year company gets stable and is willing to pay dividend, so it will pay only current year dividends and not last year dividends... if it was cumulative share company would pay last year and current year dividend.. conclusion: non cumulative share doesnot get previouse dividends and cumulative share gets all dividends (previouse+ current) when compnay restores its good financial position.
Current capital city of Indiana?
Indianapolis is the current capital of Indiana.
How do you determine the working capital of a business?
Working Capital is calculated as follows Working Capital = Current Assets - Current Liabilities Current Assets = 100000 Current Liabilities = 50000 Working Capital = 50000 (Answer)
What is a cumulative frequency?
It is the running total of the number of observations with a value upto and including the current value.
What was the capital of Zaire?
The capital of Zaire was Kinshasa. This is still the capital of the country under its current name, The Democratic Republic of the Congo.(Zaire was previously the Belgian Congo, and Kinshasa was known as Leopoldville.)Kinshasa
What is the difference between continuous and cumulative?
Continuous refers to measurements that can take any value, possibly between two limits. Cumulative usually refers to a count "up to and including" the current value.
Formula of working capital?
Net working capital = current assets - current liabilities
What is current capital of Maryland?
Annapolis is the first, current and only State Capital of Maryland.
Gross working capital?
Gross Working Capital = Current Assets Less Current Liabilities
Capital Employed is equal to?
Capital Employed = Fixed assets + current assets - current Liabilities
