Spot on. Many people pay little or no taxes. I wanna be in the highest tax bracket!
Capital Gains question
- Thread starter doublebase
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Shakira charged with tax evasion for 2nd time, owes Spanish government $7.1M in taxes: prosecutors
Spanish authorities have charged Shakira with tax evasion for a second time. The "Hips Don't Lie" singer allegedly failed to pay $7.1 million in income back in 2018.
www.foxnews.com
Sure. Lotta crooks out there; some become pretty famous. That's a different subject.Shakira charged with tax evasion for 2nd time, owes Spanish government $7.1M in taxes: prosecutors
Spanish authorities have charged Shakira with tax evasion for a second time. The "Hips Don't Lie" singer allegedly failed to pay $7.1 million in income back in 2018.
Well, since she isn't Spanish and never established residency in Spain, I'd say the crooks are in the Spanish government.
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I’ll be meeting with a tax specialist after I sell, but it’s good to know that I can include improvements (didn’t know I could use that as it being a rental), and I can take the depreciation missing in the year of the sale.
Someone recently told me that I’d have to pay the capital gains immediately after the closing, instead of how I planned (in April). I hope they’re wrong because I’d like to sock the money away in a 6 month T bill or something to gain an extra amount to help pay for the enormous amount of money I’ll be paying in tax.
You need to talk to your tax specialist about initiating and filing estimated taxes in the quarter you sell the property, if you don't already file estimated taxes quarterly. If you file estimated taxes already, an adjustment to the estimated amount may be required. It has been a long time since I dealt with this, so make sure the issue comes up when you talk to the tax specialist.
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EU countries are a mess. Totally corrupt...
If you have paid in an amount equal to or greater than last year's total tax, you do not need to pay until April 15th and there will be no penalty. The amount of penalty is greater than the yield on any CD. You should meet with the tax specialist BEFORE the sale closes.
Fidelity (and many other) Govt money market fund - typically a cash position - pays 5%, and the money is not locked up. The solution may be right in your Retirement acct. I would max out your ROTH contribution here also.
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It is not designed to us to get ahead.....Boy.... nothing like the good ole' American tax code(s).
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as mittens said, you should have been born rich.
Performers may have to pay tax on receipts in foreign countries they perform in.
I guess she has a bad accountant, didn't read the article.
According to the article she didn't perform there. The tax collectors believe she lived there long enough to establish residency. She and her accountants and lawyers disagree. Since her whereabouts are pretty well know all the time, I suspect it will be easy to prove either way.
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It depends on the visa status.... Also, her earnings are not hers but go through an offshore entity. So it's a flimsy case at best trying to intimidate her to get a plea deal which she told them to shove.
Ah, so my plans on becoming a Spanish prison guard just so I can meet her may be a bit premature.
Aren't you in the property long enough that capital gains won't apply if under 500k and a 1st time homesale
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Some good and some bad advice here.
First, capitol gains can be eleminated if occupied 2 years out of the last 5 yrs. Period. It will not apply to you in this case.
Second someone would have assigned a 'cost basis' to the house when you converted it into an invetment property. That can and should be ofset by costs associated with owning and maintaing the property. If you doubled your money, you still made repairs and had vacancies, carrying costs, etc. Those costs will be deducted from the gain.
This will be considered a long term capitol gain event and those rates vary from 0% up to 20% and are dependant on length of ownership and your personal income tax rate. I.m not positive but I think if you made less than $41,000 per year, there would be zero capitol gains tax.
Third recapture tax is based on what you depreciated not a fixed % of sales price. Residnetial assets have a 27.5 yr deprecaition shcdule. So if you applied depreciation on the purchase of $160,000, held for 20 yrs you might have depreciated $5800 per year which if you depreciated since year 1 would be approx $116,000. That is taxed at 25% on the federal level. Now their are some odd ways to calculate that number depending on when it was placed in service, so thats a rough guess and I am not an attorney or tax advisor either.
If you just rented it out and did not claim this income, which is what most small investors do, you may or may ot even have an issue. More information is needed to discuss that.
First, capitol gains can be eleminated if occupied 2 years out of the last 5 yrs. Period. It will not apply to you in this case.
Second someone would have assigned a 'cost basis' to the house when you converted it into an invetment property. That can and should be ofset by costs associated with owning and maintaing the property. If you doubled your money, you still made repairs and had vacancies, carrying costs, etc. Those costs will be deducted from the gain.
This will be considered a long term capitol gain event and those rates vary from 0% up to 20% and are dependant on length of ownership and your personal income tax rate. I.m not positive but I think if you made less than $41,000 per year, there would be zero capitol gains tax.
Third recapture tax is based on what you depreciated not a fixed % of sales price. Residnetial assets have a 27.5 yr deprecaition shcdule. So if you applied depreciation on the purchase of $160,000, held for 20 yrs you might have depreciated $5800 per year which if you depreciated since year 1 would be approx $116,000. That is taxed at 25% on the federal level. Now their are some odd ways to calculate that number depending on when it was placed in service, so thats a rough guess and I am not an attorney or tax advisor either.
If you just rented it out and did not claim this income, which is what most small investors do, you may or may ot even have an issue. More information is needed to discuss that.
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