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If your mother gives you money do you have to pay capital gains tax?
Wiki User
∙ 15y ago
Capital Gain is when some valuable thing that you own (capital) increases in value. It is computed as the difference between the price you got when you sold it, minus the price that you paid when you bought it. That formula assumes that both the purchase and the sale were fair transactions in a free market.
If your mother gives you cash, that's either a gift (if she did it just because she loves you) or it's income (if you did something to earn it). If it's income, then you almost certainly would have to pay income tax (assuming that you live in a place that has income taxes). I don't know about gifts.
Wiki User
∙ 15y ago
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What is the Difference between revenue and capital gains?
Revenue is income from labor, services, etc. Usually it is taxed at the highest rate. Capital gains is income from buying a stock or a house at one price and selling it at a profit. Usually it is taxed at a lower rate due to the fact that some of the capital gain is due to the government printing money or expanding the money supply. In other words, you by a house and sell a house for more, but you really just have enough money to buy another house, that is more money but not more purchasing power. Where it gets tricky is in hedge funds where the manager is paid a management fee out of capital gains. It has similarities to revenue, but is taxed at the lower capital gains rate.
Do you pay capital gains tax if you roll the profit into a new home?
The law changed in 1997. Before that, you had to buy a new home to avoid capital gains tax. The law no longer cares what you do with the money from the sale of the old home. If the house was your main home for two of the previous five years and you owned the home for two of the previous five years, the first $250,000 in capital gains is exempt from tax. The exemption increases to $500,000 if you file jointly and it was also the main home of your spouse for two of the previous five years.
Is a withdrawal of cash from a brokerage account taxable?
The withdrawal of cash itself is not taxable. You are taxed on capital gains within the account. If you sold a stock for $15 that you purchased for $10 your tax would be the capital gains rate* x $5 = ($15 selling price -$10 cost basis). Whether you withdraw that money or not the $5 is treated as income and is taxed. * The Capital Gains rate depends upon the length of time you owned the stock. If you own the stock less than one year it is taxed at the short term rate. If you hold a stock longer than one year then you are taxed at the long term rate.
Why does the Queen not pay tax?
Because she receives her money (appanage) from the same pot. That is, the layman's hard earned money. -------- Yes, in 1992 The Queen offered to pay income tax and capital gains tax on a voluntary basis. Since 1993, her personal income has been taxable as for any other UK taxpayer.
List five types of income that are taxable?
Anyone who makes money and is paid above table for it needs to pay taxes on it to avoid trouble with the state and federal governments. The types of income that are taxable include wages, business income, capital gains, income gained from renting property, and any money you make gambling.
What is the term used when a person sells his assets as a way to gain money?
capital gains
What are the capital gains tax 2011?
The capital gains tax is really just a fancy term for saying the tax you pay on any investment. itis the bane of the wealthy. if you have more money the govt takes more.
What is the Difference between revenue and capital gains?
Revenue is income from labor, services, etc. Usually it is taxed at the highest rate. Capital gains is income from buying a stock or a house at one price and selling it at a profit. Usually it is taxed at a lower rate due to the fact that some of the capital gain is due to the government printing money or expanding the money supply. In other words, you by a house and sell a house for more, but you really just have enough money to buy another house, that is more money but not more purchasing power. Where it gets tricky is in hedge funds where the manager is paid a management fee out of capital gains. It has similarities to revenue, but is taxed at the lower capital gains rate.
How much money do you need to make in order for the capital gains tax to apply?
The tax rate for the capital gains tax will wholly depend on the person's assets and the type of investment. It can be wise to invest even if you are still making money, but your best bet would be to talk to a finacial advisor about your options.
What are capital gains taxes used for?
General funds for the US Government, just like income tax money.
What relation between income and interest?
Income is money coming in; it could be wages or capital gains, or interest on money invested. Interest is a percentage of money owed added to your bill when borrowing money, or the amount that you earn on money invested.
What is the name for the money an investor receives above and beyond the money initially invested?
The phrase you're looking for may be capital gains, depending on how much more money is made on the investment and the type of investment. Otherwise, another term is profit.
Where do capital gains come from?
If you buy a house, stocks or just about anything, you will have a capital gain or loss on the sale. If you have a gain, you pay tax immediately. If you have a loss, you can write that off $3,000 per year. Most people say this is unfair to a person who has lost a lot in the stock or housing market. If you lose money on your home, it is not deductible. If you gain money on your home, if is taxable above an exemption. Some economist say if you buy a house and then sell it and buy another, why would you pay capital gains. You still have a house. The only thing that has changed is inflation on of the money supply.
Unearned income?
Money earned from means other than employment or self-employment, such as interest income, dividend income, capital gains on investment, rental income, etc.
What is the tax on 1million five hundred and fifty-three thousand five hundre sixty- five dollars?
The answer depends on what the money is (income, inheritance, capital gains) and the tax jurisdiction.
Do you pay capital gains tax if you roll the profit into a new home?
The law changed in 1997. Before that, you had to buy a new home to avoid capital gains tax. The law no longer cares what you do with the money from the sale of the old home. If the house was your main home for two of the previous five years and you owned the home for two of the previous five years, the first $250,000 in capital gains is exempt from tax. The exemption increases to $500,000 if you file jointly and it was also the main home of your spouse for two of the previous five years.
Do you consider money as capital?
money is capital
