Capital Gains Tax

[Owen` 2]

Maybe, but we get taxed at 40% on all capital gains above the £8k threshold. This includes property (but not one's place of residence). Sorry to go off-topic, but I bought a flat 5 years ago for £70k and now it is worth £200k. If I sell now, my tax bill will be in the region of £45k

 

40%!!!!!!!!!!!!!!!!

 

The law in the US is short term gains are taxed at the same rate your salary is.

Long term gains are taxed at now only 15%. Long term vs short term is defined by holding the stock > 1 yr.

 

In the US your primary residence is sheltered from capital gains tax up to . . . I think 250K dollars if single and 500K dollars if married. That number has changed lately so I may have it wrong. (that's not the price of the house, that's the gain).

 

Oh and there are sometimes maneuvers available for non primary residence houses . . . if you trade it for other real estate rather than pocket the cash, I think this means the sale was not a taxable event. But you do have to roll all the profit into the next piece of real estate. I think. I might have out of date info on that.

 

Okay, back to Eneukman's manevuers to deny Her Majesty a few quid.

[nidnoyham 30]

The way the Footsie is going, we will be due a tax rebate !

[wacmedia 277]

Not sure what a PUT option is.

 

Hi,

 

You are a sensible Scot, options are for gamblers.

[BillWilson 10]

I am a Financial Planner in US of A

If anyone has any questions here, PM me and

i will fill you in

BW

fyi

there are SEVERAL valid ways to avoid taxes

no perfect answer, but some better than others

DEPENDS on your particular situation

Edited June 9, 2006 by BillWilson

[Eneukman 1]

Maybe, but we get taxed at 40% on all capital gains above the £8k threshold. This includes property (but not one's place of residence). Sorry to go off-topic, but I bought a flat 5 years ago for £70k and now it is worth £200k. If I sell now, my tax bill will be in the region of £45k.

Not strictly correct. The rate at which Capital Gains Tax is charged only rises to 40% when your gain plus your total income takes you into the high rate tax bracket.

 

It is possible (though unlikely) to pay Capital Gains Tax at 10%, 20% AND 40%.

 

Alan