Posted by Rich-CA on January 25, 2009 at 08:12:28:
Who owns the property? If it is a corp or LLC filing as a corp then I do not know the answer to that. If it is a partnership or LLC filing as an ignored entity, then taxes are at the personal rates.
Capital Gains tax - Posted by M/C
Posted by M/C on January 24, 2009 at 06:42:17:
What is long term capital gains tax for investors for 2009?
How can you reinvest profit from a sale of a property with minimal taxes or none NOT USING a 1031 exchange?
A single member LLC owning a property for eight years in a low tax bracket any ideas?(college fund,IRAS,gifts etc)
Re: Capital Gains tax - Posted by Rich-CA
Posted by Rich-CA on January 24, 2009 at 09:17:50:
The cap gains tax for 2009 may change at any time depending on when Obama decides to increase it (he did say he would do that when campaigning). Often they makes these changes retroactive to the start of the tax year, so its really hard to predict. I believe the current rate (if no changes are made this year) is 15% for ordinary gains and 25% for recaptured depreciation. If the Obama change takes effect, figure 25%.
Once you sell a property, if you are not going to do a 1031 (which only delays taxes, not eliminates them), you will have to pay tax unless you can place the funds in a tax sheltered annuity, IRA, or the like. Up to your contribution limits, everything after that is “after tax” money and you will pay taxes on it.
Oh, gifts to charity will also be tax deductible, but its still after tax money.
If what you want is some means to not pay taxes at all, then you have very few options.
Re: Capital Gains tax - Posted by M/C
Posted by M/C on January 25, 2009 at 05:20:35:
I thought CGT was 0% to 5% for the first 250K for the 10% to 15% tax bracket?(Small Business)
And thanks for the answer!