17. December 2013 · Comments Off · Categories: Tax News · Tags: , , , ,

Osborne to Tax Capital Gains on Home Sales by Non-Residents (3)

Osborne's capital-gains tax “can be easily avoided — the owner just retains and never sells the property,” Rosalind Rowe, real estate tax partner at PricewaterhouseCoopers LLP, said in an e-mail. “It is unlikely to dampen the heat of the housing …
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Fiscal policies: Buying and selling shares


Understand the tax implications of buying and selling shares of crucial importance. A practical understanding of key concepts to enable investors to make intelligent decisions in order to:

1. Maximize profits

2. Minimize tax liability

In this article we will talk about capital gains and ordinary income refers to the purchase and sale of shares. The primary concepts presented include:

*> Capital gains and losses

* Long and short-term gains or losses in capital

* How to calculate capital gains

* Sales

* The tax rate on capital gains and ordinary income

Here is a list of terms and definitions. Check the new definitions are needed to better understand complex situations.

Useful vocabulary

Capital gains (or losses) = Net profit (loss) of an investment, then sellthat the sale of the shares.

- Capital Invest

= Income for the shares represents interest or dividends from shares. The essential point is that the property is not sold.

Net = net gain long-term capital gains exceed the losses in the short term.

Losses = net capital losses exceed capital gains

= Capital loss deferred exceed the deduction for the year, the losses have occurred, ieAccepted part of the losses, to see the tax return the following year.

There are 2 main options, one of my profits and / or sale of shares.

In addition, the tax implications vary depending on the income statement.

1. Sale of investment (capital gain or loss)

2. The dividends or interest on shares (ordinary income)

1 Capital Gain / Loss: buy low, sell high

Investors and traders who buy shares at a low price and sell at aprice increase. The revenue from this type of surgery), is a capital gain (or loss.

For the profits of trafficking in order to calculate the first step is the base * * Cost: the amount paid for the shares, including those established corridors of the Commission.

Then you subtract the base cost of the sale price plus a commission broker. This will give the amount of gain or loss. The loss occurs when the cost exceedsSelling price. An increase occurs naturally when the sale price exceeds the cost.


An investor buys 100 shares of GOOG (Google) to $ 250 per share. The basic cost of this measure is $ 250 x 100 shares, and the Commission brokers say $ 25. The basis of the total cost is $ 25,025.

Three months later, the investor sells 100 shares for $ 300. Thus, $ 30,000, plus a fee of $ 25 – less than $ 25,025 results in a gain of $ 5,000. The inverterincluding the proceeds of this benefit at the time tax. This is an example of a capital increase in the short term, are for higher taxes. (see below)


If there is a California capital gains (real estate) tax, what is the rate?

Answer by tonalc1

Answer by bostonianinmo
That depends. If it was your principal residence, and if you lived in it for 2 out of the last 5 years immediately prior to the sale, then you may exclude up to $ 250,000 ($ 500,000 if married filing jointly) in gain from federal taxes. Excess gains are taxed as capital gains, as is the entire gain if you don’t meet the ownership, residency and/or occupancy conditions.

CA law may vary on that. Consult a tax advisor in CA for full details.

Answer by rstump1
If it is an investment property and you have not lived there the last 2 of 5 years, you not only have to pay federal capital gains, you have to pay state income tax and local income tax if it was in a town that has them.


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