About capital gains

[MikeE]

I totally agree that people should pay capitol gains, but, as as an average worker who go got capital gains one year, I owed taxes that I had to go in debt to pay...

Trust me, I am a total Obama supporter,

I think that people who have seen their investment grow over a few years should be able to average their income over several years to lessen the tax burden to offset those taxes.

I paid $26,000 in taxes on the sale of my old home and rolled the money into a new home just to move into a neighborhood where I wouldn't have to worry about getting shot on my way to, or from work, (I walk to work, don't own a car, and don't make more than $100,000 per year), but because of the housing bubble, had to pay capital gains on the profit I made on the sale of my old home. Even though I rolled all the profits into the purchase of a new house.

I know it's a sticky wicket and I don't mind paying my fair share, (in fact, I would gladly pay up to half of my income to guarantee that everyone would have health care and a college education), but, I think that one good year shouldn't cause people to go into debt. Again, I think this is an assault on the middle class, and something that small business owners, or, farmers who happen to have a good year, would have to deal with as well. It's just something to take into consideration when dealing with income.

[Rosa Luxemburg]

1. how long did you live in your home?

[MikeE]

2. About 9 years

I had hoped on turning it into a place where I could develop arts education for a community that really needed it, converting the first floor into a performance/art gallery for the neighborhood children. But it got way too violent, (it was already bad, but west coast gangs started moving in), I'm in DC.

[MikeE]

4. I sill count it as a failure

Even though I had guns held to my head, (literally), more than once, and had to get treatment for PTSD. But, West Coast gangs started moving in.

[Rosa Luxemburg]

8. then you shouldn't have paid capital gains unless profit was over $250K

[JimWis]

3. Something doesn't sound right. You should not have had to

pay capital gains tax on the selling of your main home. Especially if you lived in it that long. Unless this was years ago. But even then you should have been able to roll it into your new home. Now the laws have changed and hardly anyone has to claim a gain on a home sale.

[MikeE]

6. The tax law changed under Bush, and you have to pay

of course, screw the middle class . The old law let you roll it over into a primary residence. When the repugs came to power, hey changed that.

[yodoobo]

7. I think you've been had

talk to a tax pro and get your refund.

[MikeE]

10. l'll follow up

but I checked before. I did make more than $250,000, (Keep in mind I sold and bought the new place at the top of the market). But everything was rolled into the new place and the mortgage doubled. Now I live in a place that is less than 900 sf as opposed to the old place that was 4000 sf, (although te new place is in Foggy Bottom), but I have no regrets, (other than the kids in the neighborhood that I wish I could have helped). I'm really not complaining, as much as I am thinking that there should be some way to address the fact that I'm sure that I'm not the only person who bought something with the intention of providing a service to the neighborhood. Still, I may be able to do something from here. I'm not giving up. I can claim that I lived in the neighborhood and maybe rent space at some point, just not live there.

[dysfunctional press]

11. if your profit was over $250,000- then yes, you'd have capital gains.

assuming that you're single.

btw- did you put any money into improvements?

my wife and i made 300K on our place- but there are two of us- and i put at least 50K into it over the 10 years. we owned it and remodeled most of it. probably more than that even.

[yodoobo]

5. Why would you pay taxes on the sale of your home?

Taxes on primary home capital gains was eliminated awhile back even if you didnt roll the profit in your home.

If you do roll into your new home, that capital gains tax avoidance has been law for a long long time.

If you did your own taxes, it might be worthwhile to have a pro take a look at it. You might be entitled to a massive refund.

[PsN2Wind]

9. Kick your tax guys ass.

I've rolled over the gain from several homes in the past and only had to pay capital gains the one time I bought down.

[TahitiNut]

12. You apparently have the WORST tax preparer/adviser in the country.

First and foremost, there are NO CAPITAL GAINS on the sale of a primary residence if, within 18 months, you buy a new primary residence at a cost equal or greater than the net sales proceeds (sales price less cost of sale) of the prior residence.

If, on the other hand the NEW residence costs less than the net sales proceeds of the prior residence, then the difference goes towards a lifetime exemption of $250,000 ($500,000 for a couple). ONLY when that exemption is exhausted are capital gains taxes assessed.

LASTLY ... anyone in 2008 or 2009 whose ordinary income is in the marginal income tax bracket of 15% or less (single earnings of around $34K) pays ZERO LONG-TERM CAPITAL GAINS TAX!!!

That's right ... if Michael Bloomberg has a salary of $1 as Mayor of New York and has no other ordinary income, he can cash in and get long-term capital gains of $1 billion or more and pay NO FEDERAL INCOME TAXES!!!


You have the WORST fucking tax adviser on the whole fucking planet!