Capital Gains Tax – 5 Strategies to Help Avoid or Reduce Capital Gains Tax

Have an asset that has appreciated in value and you want to pocket the gains? Don’t forget, you may owe the IRS a portion of your gains, Capital Gains Taxes. Depending on how long you owned the asset and your taxable income will determine how much of your gains that you will need to turn over to the IRS in Capital Gains Taxes. In this video I discuss short-term gains, long-term gains and 5 strategies to help avoid or reduce the capital gains tax to potentially keep more of your gains in your pocket.

#CapitalGainsTax
#TaxStrategies
#TaxPlanning

[siuivy]

Hi Sir, I was sold out my rental property, it has purchase in 2014 $100, 000 and 2021 $210000 sold out, the repair cost is $50, 000 and depreciation is $3, 000/pre yr, we are MFJ tax rate so how to calculate the capital gain? pls help. Thanks

[Bondbeer]

You example of primary residence 2 of 5 years is not accurate if you ever rented the house or used it as a second home for any period. Simple example. Bought the home as a vacation home and then converted it to a primary residence after 3 years. You then sold it 3 years later. You bought it for $500k and sold it for $750k. You would pay tax on half the gain.

[Bondbeer]

Brain Teaser for you. True or False? There is an income level where generating additional income as long term capital gains will cause more tax than generating the same additional income as short term capital gains or ordinary income.