Question: 2008 & cap gains tax

  • Thread starter Gerard Anthony Gold
  • Start date

G

Gerard Anthony Gold

Hello,

I was reading Lasser's 2006 tax book, & there is mention of 0 capital gains
tax for sales made in 2008.

Now, does this apply to sale of a property acquired as part of a 1031
exchange?

If for whatever reason you do not want to be held up as giving legal advise
on the internet / a public form, you could just e-mail what you know to my
address - as an opinion rather than a legal guarantee.

Thanks,
Gerard
 
I

Ira Smilovitz

Gerard Anthony Gold said:
Hello,

I was reading Lasser's 2006 tax book, & there is mention of 0 capital
gains tax for sales made in 2008.

Now, does this apply to sale of a property acquired as part of a 1031
exchange?

If for whatever reason you do not want to be held up as giving legal
advise on the internet / a public form, you could just e-mail what you
know to my address - as an opinion rather than a legal guarantee.

Thanks,
Gerard
The 0% long term capital gains rate only applies to that portion of the gain
that falls in the 10% or 15% income bracket. Any additional gain will be
taxed at 15%.

Ira Smilovitz
 
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G

Gerard Anthony Gold

Thanks, Ira. Though I should have also mentioned that this is detailed in
the Lasser book.

More specific ally, I am interested in whether a property I acquired through
a 1031 exchange, and then sold, rather than exchanged, in 2008, would
qualify for the 0% treatment - assuming I was in at or below the marginal
tax bracket ceiling.

Any volunteers on the 1031 question?

Thanks,

Gerard
 
P

Phil Marti

Gerard Anthony Gold said:
More specific ally, I am interested in whether a property I acquired
through a 1031 exchange, and then sold, rather than exchanged, in 2008,
would qualify for the 0% treatment - assuming I was in at or below the
marginal tax bracket ceiling.
It doesn't matter how the property was acquired.
 
G

Gerard Anthony Gold

Thanks, Phil.

Also, a Google search yields insights - including the one that capital gains
on income property sales, are, for low bracket individuals, added to
income - which would raise the bracket. There are rules, as Ira suggests,
about portions of the gain that would be exempt. Anyway, this probably needs
more research.

I was hoping to make this a DIY analysis. Perhaps I'm just sleepy, but it's
beginning to look like I may need a professional tax strategist who's
figured out the implications of the tax law for various situations.

Gerard
 
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P

Phil Marti

Gerard Anthony Gold said:
Also, a Google search yields insights - including the one that capital
gains on income property sales, are, for low bracket individuals, added to
income - which would raise the bracket. There are rules, as Ira suggests,
about portions of the gain that would be exempt. Anyway, this probably
needs more research.
It's really pretty simple. The 1040 instructions have a worksheet for
calculating tax when there are long-term capital gains. Just substitute
zero for 5% to get an idea of how it works.

In October 2007 you'll know the inflation adjustments for 2008, after which
you can start doing some number crunching.
 

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