keller williams realty in knoxville: Capital Gains Taxes and Real Estate
- 11/10/14 01:23 AM
Capital Gains and Real Estate We hear a lot about “capital gains” and capital gains taxes. To some, this is a complex world fit only for CPA’s and tax attorneys. However, it is really not that bad. In this post I will go over what is and what is not a capital gain, how capital gains apply to real estate transactions, and when you don’t have to pay taxes on your capital gains. What exactly is a capital gain? Well, let’s unpack the term “capital gain”. Capital, according to the IRS, refers to a person’s or a business’s “capital assets”. The … (2 comments)
OVER IMPROVING – It may seem hard to believe that one could actually over improve a home but it is possible. Investing more into a home than what the neighborhood will support is a common mistake. Example: If $100,000 is the average home price for a specific neighborhood, investing $30,000 into a gourmet kitchen will not automatically yield the homeowner 130k if/when they try to sell. A $30,000 gourmet kitchen renovation is an over improvement for that specific neighborhood. If you are unsure how much is too much, consult your local … (3 comments)
Capital Gains and Real Estate We hear a lot about “capital gains” and capital gains taxes. To some, this is a complex world fit only for CPA’s and tax attorneys. However, it is really not that bad. In this post I will go over what is and what is not a capital gain, how capital gains apply to real estate transactions, and when you don’t have to pay taxes on your capital gains.
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