Gains & Losses

Jan Brady’s Capital Gain: Sells House (She Bought In 1969 For 55.3k) For 3.9 Million

Here’s the story of a middle child who made one heckuva investment! Eve Plumb, who played Jan Brady on the iconic 70s TV show, The Brady Bunch, recently sold her Malibu bungalow for $3.9 million. Ms. Plumb purchased the seaside property in 1969 for a mere $55,300, equivalent to approximately $360,000 in our present economy. Sure, it will be subject to tax as a long term capital gain, but it still made Marcia and Greg’s younger sister a rich gal.

Tax Issues for new Widows and Widowers

It’s a traumatic experience to lose a spouse. While there is little that can be done to replace this physical and emotional loss, the Tax Code provides some relief for newly widowed taxpayers. Here is a summary of some of the tax breaks for the newly widowed:

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Ways To Reduce Taxes In Retirement

Which retirement account, vehicle or venture is best? One thing is certain, diversity still carries the day when it comes to investments as different ones afford the most flexibility. The returns on different types of investments are treated differently by the tax code, which logically means that some get better tax treatment than others. Qualified dividends and capital gains, for example, are taxed at a lower rate than ordinary income, and thus are attractive investment options for retirement.

Real Estate Loss Deduction for Individuals

In the last ten years, too many taxpayers have sold real estate at a loss. How does this type of loss ultimately affect the amount of taxes owed to the IRS? First, to accurately determine the amount of a loss from disposition, compare the property’s sale price to its tax basis. The tax basis is generally the original purchase price, plus the cost of improvements (but not expenses deducted as repairs and maintenance) less depreciation.

Losses, Expenses and Interest between Related Taxpayers – Know The (Tax) Code: 26 U.S.C. §267

Congress, aware that related parties could create fictitious tax losses lacking economic substance based upon the related parties continued enjoyment of the property subject to the loss, enacted § 267 of the Internal Revenue Code to disallow certain losses and deductions on transactions between related taxpayers.

Tax on Capital Gains and Losses, Explained

A capital gain occurs when you transfer or sell a piece of property for more than its acquisition cost. To be more succinct, it’s the profit realized on the sale of a non-inventory asset. Capital gains are realized from the sale of all types of property, both real and personal such as investments and other traditional non-investment  types of personal property. In the United States, with certain exceptions, individuals and corporations pay income tax on the net total of all their capital gains.

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