New answers tagged

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The capital gain would be $900k - ($500k - depreciation that was taken or should have been taken), assuming no improvements were done for simplicity. From https://www.irs.gov/publications/p544#en_US_2020_publink100072284: Property Changed to Business or Rental Use You can deduct a loss on the sale of property you acquired for use as your home but changed to ...


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A gift is unconditional. You cannot say "I gift you this but you must return it back to me". If you give the money to your parents, they can chose to spend it however they want to. Claiming that something is a gift when it is not for the purpose of paying less taxes is tax fraud. If you plan in "gifting" the money and then operating with ...


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Likely not. The core concept here is that of "tax residency". You are a "tax resident" of one country (likely Sweden in your case) and that country gets to tax all your income, worldwide. Let's assume you actually worked in Norway while being a Swedish tax resident. Norway would understandably desire a cut of your salary as well. After ...


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In a taxable account the moment you sell those shares, you have a transaction that has tax implications. If the investment is in a retirement account, pulling the money out of the retirement account can also trigger penalties, depending on your age. We sometimes see questions related to selling investments but keeping it in the brokerage account to delay ...


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CoinBase will issue some forms but ultimately you're responsible for filing your taxes. Whether your gains are short- or long-term is irrelevant. For the 2020 US tax season, Coinbase will issue the IRS Form 1099-MISC for rewards and/or fees through Coinbase.com, Coinbase Pro, and Coinbase Prime. Non-US customers will not receive any forms from Coinbase and ...


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I wish I could answer in greater detail. I have not received or created a tax report from Coinbase yet. Coinbase might report nothing but provide you with all the necessary information in your report. If the report is a 1099-B, then yes, they reported to the IRS. Since they refer to it as a tax report I assume it is not. If your trades are over a certain ...


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Great answer (mirror) by penguinise: You can't. The article is referring to the provisions of Section 1043 of the Code, whereby you can defer the realization of capital gains, but only if: You are an officer or employee of the Executive Branch or a judicial officer of the federal government of the United States, or a spouse or minor dependent thereof, and ...


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Imagine that a married couple buys a house on January 1st 2001 for 500K and lives in it for 5 years. On January 1st 2006 they rent out the house. The market value of the house is 700K at that point. The house is rented out for several years and on January 1st 2011 the couple sells the house for 900K. Is the capital gain 900K - 500K or 900K - 700K (the house ...


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I would say you do not meet the requirements of the primary residence capital gain exclusion. It sounds like you had an apartment in June and July of 2019 while you did renovations at the new house. Therefore the apartment would be your primary residence for that period, and if you sold in June 2021, you wouldn't meet the 24-month holding period. The IRS ...


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The capital gain is 900k-500k, because they get no benefit from any "primary residency" that transpired more than 5 years before the sale. Determine whether you meet the residence requirement. If you owned the home and used it as your residence for at least 24 months of the previous 5 years, you meet the residence requirement. The 24 months of ...


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Yes, your regular tax bracket will affect how much capital gains tax you owe. It depends on the exact size of your capital gain (rough calculation says about $400k) and the amount of your other income. But the long-term capitals gains tax brackets are 0%, 15%, and 20%. There is also an additional 3.8% Net Investment Income Tax (NIIT) that applies to ...


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Assuming there was a $200k mortgage on the relinquished property, then there is no 'mortgage boot', because there is a $200k mortgage on the replacement property. You have the $100k 'equity boot' as you explained. It is fully taxable at your personal capital gains rate. Federal tax rate calculator here. Add your state income tax rate to this federal rate to ...


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I sold a rental property this year and it's going to move me up in the tax brackets... I have some crypto I want to sell off and put into silver and gold but I'm not sure how much to put into savings because this tax system seems so confusing. I'm not looking for an exact answer if it's not trivial, just maybe some guidance on where to look. Since this is a ...


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SPECIAL NOTE: THIS IS ONLY FOR SINGLE-FILING TAX STATUS. IF YOU ARE A COUPLE, IT WILL BE DIFFERENT! SPECIAL NOTE 2: TAX BRACKETS ARE GRADUATED. MAKE SURE YOU UNDERSTAND HOW BRACKETS WORK BEFORE PROCEEDING This is the long-term capital gains tax brackets: You can find it here: https://www.nerdwallet.com/article/taxes/capital-gains-tax-rates#:~:text=In%...


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It depends on your income. The capital gains rates for long-term gains are 0%,, 15%, and 20%, depending on income. From the IRS: Capital Gain Tax Rates The tax rate on most net capital gain is no higher than 15% for most individuals. Some or all net capital gain may be taxed at 0% if your taxable income is less than $80,000. A capital gain rate of 15% ...


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Adjusted cost base In some cases, special rules may apply that will allow you to consider the cost of a property to be an amount other than its actual cost. This section explains these rules. Identical properties Properties of a group are considered to be identical if each property in the group is the same as all the others. The most common examples of ...


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If your goal is to avoid short-term capital gains tax you could buy a put + sell a call on VT (same strike/maturity, i.e. a synthetic forward) and buy a call (+ sell a put or put spread, if your option agreement/risk tolerance allows) on VEU with maturity dates far enough in the future that you'll have held your VT position for over a year. The main risk ...


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In many stock-swap mergers, you keep your existing holding period. According to this article from Zacks.com (their emphasis): If you trade old shares for new through a merger or acquisition, the IRS does not look on the event as a taxable transaction. It doesn't matter whether the shares are preferred, common or private; nor does it matter whether the trade ...


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You can't "exchange" one asset for another similar asset, if the asset you hold is a stock. If you instead wanted to do this for investment real property (not a residence) or a business, you'd possibly be able to pull off a 1031 exchange (a "like-kind" exchange). Even this is very complicated (I don't have experience with it).


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