The need for capital gains tax advice with the impending tax season is as crucial as ever. With the fiscal year coming to an end many people and businesses are wondering the same questions: What are the changes in the capital gains tax rate? What impact will these changes have on my business and finances? How will my properties and investments be impacted?
Each of these questions is pertinent and calls on expert capital gains tax advice. I will address a few of the major points throughout this article, but the conclusion will always be this: For expert capital gains tax advice you need a certified public accountant.
To start off I want to identify what the capital gains tax rate is. Through investing in real estate properties and other significant items we are able to benefit financially. As such, a capital gain is defined as how much you have made with your investment or purchase. Conversely, a capital loss is how much you have lost financially with the same investment or purchase. The sort of investments I am speaking of relate to real estate properties, bonds, stocks, boats, cars, etc. The difference between your capital gain and your capital loss is what is known as your net capital gain. This is the number you are actually taxed on.
The obvious downside to these financial decisions and successes are the taxes incurred. Never easy to deal with and often complicated in their vernacular, it is important to seek out capital gains tax advice to avoid IRS intervention and worse consequences.
The first part of the capital gain tax rate relates to short-term capital gains taxes. Normally these equal the same rate as your ordinary taxes. These are usually made up of any investments you have held for as little as a year and are often the more difficult to discern and properly calculate.
The second part of the capital gain tax rate relates to long-term capital gains taxes. Typically taxpayers qualify for a 0% rate after owning their properties or investments outright for over a year.
What is the 2017 Capital Gains Tax Rates?
Capital Gains Tax Rates for Single Filers in 2017:
- Income / Tax Bracket / Short-Term Capital Gains Rate / Long-Term Capital Gains Rate
- Up to $9,325 / 10% / 10% / 0%
- $9,326 to $37,950 / 15% / 15% / 0%
- $37,951 to 91,900 / 25% / 25% / 15%
- $91,901 to $191,650 / 28% / 28% 15%
- $191,651 to $416,700 / 33% / 33% / 15%
- $416,701 to 418,400 / 35% / 35% / 15%
- $418,401 and over / 39.6% / 39.6% / 20%
*These rates differ for married couples filing separately, married couples filing jointly, and for those filing as head of household.
Seeking Capital Gains Tax Advice:
For up to date expert capital gains tax advice it is important to employ a qualified CPA. Nealson Group is a team of experienced accounting firms based in Boca Raton, FL. Our CPA firm focuses mostly on real estate accounting and helping entrepreneurs continue to thrive in their area of expertise. For more information regarding our accounting services or to receive capital gains tax advice visit our website at Nealson Group. Contact Us for additional inquiries you might have and allow us to help you during the coming tax season.
Facebook: Nealson Group