When you file your income tax return for the year of the sale.
Capital gains is defined as income made from the sale of assets that were purchased at a price lower than that of the sale. Capital gains tax would be the taxes the government charges you on that income. Most capital gains taxes are the result of the sale of stocks and bonds, commodities, and real estate. A very good reference for this can be found on Wikipedia at http://en.wikipedia.org/wiki/Capital_gains_tax.
If the sales price of my business includes goodwill, is that portion subject to capital gains treatment or is the goodwill considered to be ordinary income?
Yes you do if you owe any capital gains tax on the sale of the asset after your income tax return is completed correctly and IF you owe any taxes on gain.
There was an option to reinvest proceeds from the sale of a home into a new home in order to avoid capital gains taxes. That option was repealed in 1997 and replaced by the current $250,000/$500,000 exclusion. There is no other option to avoid capital gains taxes by reinvesting. Perhaps you are thinking of the Section 1031 exchange that lets you trade one income-producing or business property for a similar property. See: http://www.irs.gov/newsroom/article/0,,id=179801,00.html
No, not if the home is your personal residence at the time of sale. A loss on a personal residence is not deductible. It cannot be used to offset any type of gains, ordinary or capital in nature.
Capital gains is defined as income made from the sale of assets that were purchased at a price lower than that of the sale. Capital gains tax would be the taxes the government charges you on that income. Most capital gains taxes are the result of the sale of stocks and bonds, commodities, and real estate. A very good reference for this can be found on Wikipedia at http://en.wikipedia.org/wiki/Capital_gains_tax.
Yes long term capital gains on the sale of real estate would be subject to your income tax return. Capital gain taxes would be a part of your income tax on your 1040 income tax return.
No. And if neither house is your main home (primary residence) you will have to report the sale of both houses on your income tax return and be subject to income taxes on the sale of the capital gains on both houses.
If the sales price of my business includes goodwill, is that portion subject to capital gains treatment or is the goodwill considered to be ordinary income?
A capital gains tax is applied to the sale of financial assets. The capital gains tax in Ohio is 15 percent.
Yes you do if you owe any capital gains tax on the sale of the asset after your income tax return is completed correctly and IF you owe any taxes on gain.
There was an option to reinvest proceeds from the sale of a home into a new home in order to avoid capital gains taxes. That option was repealed in 1997 and replaced by the current $250,000/$500,000 exclusion. There is no other option to avoid capital gains taxes by reinvesting. Perhaps you are thinking of the Section 1031 exchange that lets you trade one income-producing or business property for a similar property. See: http://www.irs.gov/newsroom/article/0,,id=179801,00.html
Yes it is possible that you could have to pay some capital gains tax on the sale of some inherited capital assets.
No they are not. Municipal Bonds are generally tax exempt for interest paid on them on Federal Income taxes. Sale of Municipal Bonds are reported on your personal tax return and therefore any gain on the sale will be reported on Schedule D.
Not necessarily. In most cases the personal property components will depreciate in actual value, so their value at the time of sale will be close to their depreciation cost basis. Thus more of the sale gain will be allocated to real estate rather than personal property and taxed at the lower capital gains rate. A 1031 exchange to defer capital gains taxes is also a viable option for
Yes it is always possible that may be required to pay some capital gains tax on the sale of your first house.
Yes, you owe capital gains tax if you made a profit on the sale.