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Do you have to pay federal capital gains taxes on sale of raw land in the state of Texas?
Wiki User
∙ 13y ago
Let's put it this way: one or another kind of federal tax most likely will be due and payable and unless you have a martyr complex it would most likely be better to pay capital gains taxes on the "gain" rather than ordinary income tax on the "profit". Which kind of tax you have to pay will most likely hinge on whether the land was held for investment (capital gains) unless you are considered some kind of dealer. And for federal tax purposes, the state where the land is located is irrelevant. This information is limited to a "true" sale to a bona fide third party purchaser for value, and not some kind of estate planning transfer, gift or other kind of transaction.
Wiki User
∙ 13y ago
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What is the Georgia state capital gains tax rate?
A capital gains tax is a federal tax that is paid by both corporations and individuals on the net total of their capital gains for the year. In the state of Georgia that rate is 6.0 percent.
Are capital gains given favorable tax treatment?
Long term capital gains are taxed at a federal rate of 0% or 15% which is considerably less than the rates on ordinary income. State income tax treatment of capital gains varies by state.
What is the capital gains tax?
The capital gains tax rates are determined by the type of investment asset and the holding period of the asset. In additional to the federal capital gains tax rates, your capital gains will also be subject to state income taxes. Many states do not have separate capital gains tax rates. Instead, most states will tax your capital gains as ordinary income subject to the state income taxes rates.
What is the capital gain tax rate?
The capital gains tax rates are determined by the type of investment asset and the holding period of the asset. In additional to the federal capital gains tax rates, your capital gains will also be subject to state income taxes. Many states do not have separate capital gains tax rates. Instead, most states will tax your capital gains as ordinary income subject to the state income taxes rates.
Do you have to pay capital gains tax in IL?
Illinois income tax is based on your federal Adjusted Gross Income (AGI), plus a few state adjustments. If the capital gain is included in your federal AGI, you will also pay state tax on it. There is no special Illinois state tax rate for capital gains, it is taxed at the same rate as ordinary income.
How much is capital gains taxes on land?
In the United States, the federal long term capital gains tax is 0% or 15%, depending on your tax bracket. The short term rate is the same as for ordinary income. There are also state income taxes which vary by state.
What percentage of tax do you have to pay on capital gain?
The federal long term capital gains rate is 15% for most people. For low income people in 2008 thru 2010, the rate is 0%. The federal rate for short term capital gains is the same as the rate on ordinary income. In addition, state income taxes may apply, which vary by state.
What is your favorite US city with no capital gains tax?
Very,very few cities have a capital gains tax...or any income tax at all. Those that do would have a very small percentage tax compared to either Federal or State ones.
Does Dallas have a state capital?
Dallas is in Texas. The state capital of Texas is Austin.
What is the difference between long term capital gains and short term capital gains?
When you buy an investment and then sell it in less than a year, the held longer than one year. Short term gains are taxed at your current federal tax rate and a state tax rate. Long term gains are taxed at 15% for the feds and a state tprofit you've made is called short-term capital gain. Long term capital gain is profit from investments ax(unless you're in the 10% or 15% fed.income tax bracket, then the federal LT gain tax is ZERO in 2008!).
What is california's state tax on long term capital gains?
treated as ordinary income and taxed at your ordinary income tax rate. No breaks as in Federal !
Is there an income tax on treasuries?
Interest payments on Treasuries are subject to federal income tax, but not state income tax. If you buy and sell Treasuries, any capital gains are also subject to federal and usually state income taxes.
