The Beginners Guide to Taxes Finding the Starting Point
5 Tricks for Deferring Capital Gains Tax
In taxation, a capital gain results when you sell a non-inventory asset at an amount higher than its acquisition cost. On the other hand, if the sale proceeds are lower than the asset’s purchase price, a capital loss results. Taxation authorities require you to report gains on the disposal of assets. At times, capital gains taxes amount to large amounts, but you can defer or avoid them, which will limit your liability. Here are top 5 tricks for deferring capital gains tax effectively.
Ensure you own the asset for at least one calendar year before selling it. The purpose of this step is to pay capital gains taxes at reduced rates because the income tax bracket that will be used during the calculations will be much lower. Waiting to sell after a year will result in savings as high as 20 percent.
If …
The Beginners Guide to Taxes Finding the Starting Point READ MORE