The biggest problem is that the rules keep changing. Whatever plans you have now can change 4 years later. All of a sudden you go from not owing taxes to owing taxes on every dollar.
Question: Let's say I buy one share of Apple on January 1, 2020. Then, on June 1, 2020 I buy another (one) share of Apple so now I have 2 shares of Apple. Later on January 15, 2021 I sell both shares. Does one count as "long term capital gain" and the other as "short term"??? or are both counted as long term based on the first share that I bought? How does this work? Thanks in advance!
That's a good question. Another would be which one would they say you took first. I believe they will tax it as Last In First Out so you pay as much taxes as possible.
Great Vid! To help people even more understand the historical context, pleases include other stats and visuals like the population. In 1776, there were only 2 million people in USA! That’s the reasons why we need more income money and taxes is because we have more things to do.
Hi..., I am in Pheonix, AZ. Do capital gain tax apply to mobile homes...? I bought the MH 4yrs ago and have been paying the taxes on it, the thing is... That I had a problem getting the title transferred to me for the longest time. I FINALLY got the title transferred 6 months ago and now I'm selling the MH at a nice profit. The land is leased at $600, and I was a private buyer that bought from a private seller... I already bought another home in FL. 4 months ago and plan on moving there when this is sold... Can the Capital G tax (if any) be deferred to the new home...??? I am unemployed. 56yrs old. And these are primary residents for me... It does show on the community lease that I have been here since 2017, but the tax office has the previous owner on their records paying the taxes up until 2021... Am I screwed...😣 WORRIED...😓
If I’m exempt from capital gain do I needs to report to my CPA about my exempt?? Or do IRS send me any form saying I’m exempt ?? Please explain how do I know if I’m exempt or not??
can we get exemption for having two flats out of capital gain? sec 54 and 54 F differs. i think that from ay 20_21 we have option to have two flats out of capital gain.kindly advice.thanks
Am I understanding you when you said that "capital gains are tax free in a year when you have no income"? (min 10:40). That seems very favorable to a wealthy person who has Millions in Short term or Long term cap gains, no tax. Unfavorable to a low income person who may earn 20K in income and also capital gains; they'll pay more CG tax than the wealthy? How unfair! Please clarify. Thanks.
Hi I sold investment property I didn’t do 1031 exchange I am merry And renting my primary residence(is no my) What will be my tax rate This was a longtime investment.
Hey here's my question if I filed my taxes already for 2021 and sold a piece off land do i refile my taxes or does it goes to my 2022 taxes when I file thank you
When a mutual fund in a tax deferred account distributed long and short term capital gains is that gain treated as ordinary income or is it treated at the more favorable long term capital gain rate?
This pertains to home ownership. Can you give example of brothers on tile. My bro helped my refi Jan 2020 and in turn he was apparently placed on title. So after 2 yrs he would get the $250000 exemption correct? Then I get the $250000 exemption of course as I have owned for 20 yrs. His cost bases the same as mine? We owe 200000 and sell for 1000000 having $800000 in profit. What does cap gains look like in this scenario?
It depends on how long you held before selling. Over a year is taxed at long-term capital gains tax rates and under a year is taxed at ordinary income tax rates.
question, if I have 20 year old stocks giving out yearly dividends exceeding Millions and yearly taxed at 20%... can I get another citizenship and renounce my American passport and pay exit tax and retain my current stocks and live in a tax friendly country? thanks
Good explanation, Thank you. However your presentation is incomplete. You did not explain why capital gains tax rates on long-term investments are lower than ordinary income and short-term capital gains. If people understand why capital gains tax rates on long-term investments have to be lower, there would be almost no support to increase it. The reason long-term capital gains tax rates are lower is because of the effect that inflation has on your long-term return. Because inflation erodes our real return over the long term, it stands to reason that the tax should be lower to compensate.
I subscribed, you are so helpful to so many people I know. Thank you so much. One of the common questions my friends ask is after they fully depreciate their dream car (using the 1 year accelerated depreciation and waiting 2 years for capital gains), how are they able to transfer that dream car from a company car to solely being a personal use vehicle without paying any money or taxes in the transfer. I understand the vehicles' repairs and insurance will no longer be deductible for the business as it is now a personal vehicle, however a new company vehicle can be purchased instead and you can now enjoy your dream car. I believe a lot of people get mixed up with this and end up getting heavily taxed, whether it be capital gains tax or depreciation recapture. Can you explain the process please.
If the car is given to the owner for no charge, you must be certain to properly classify the transfer as either compensation to the owner to the extent it is for services provided, or as a distribution on which you, the owner, will pay tax to the extent the value of the car exceeds (what you paid)
@@LYFEAccounting so if you purchase a vehicle for your business, you use accelerated depreciation to fully depreciate it in the first year, you wait an entire second year so you don't get capital gains tax, and after that you, as the owner of the business gifts the car to yourself for free and by claiming it as compensation for work, you don't have to pay any taxes or money on it? Can you explain that because the compensation for work sounds like alternative income but also there's gift taxes that may be affected since its gifted for free (but in compensation??)
When do businesses get treated like assets and have to pay capital gains tax? Dont businesses constantly realize their gain just by making profits? Im not well knowledged in this subject so Im confused because you mentioned businesses being liable to capital gains.
Hey there! Hope this reaches you! I had a question i could really really use some help on. I have currently made roughly 30k in income this year. I am now on unemployment. Will income from unemployment bump me up tax bracket? The research i have done points me to no as unemployment is not “earned income” Any and all help would be greatly appreciated! Thanks in advance!
@@LYFEAccounting so i will end up paying the 15% correct? I live in California I will have owner my home for just over a year and now selling. What about a section 121 home exclusion? Thanks for the help by the way
Great video, very informational! What if someone made less than $20,000 a year in regular wage income, but made $1.5 million in 5 months in cryptocurrency for an example. Would they be taxed at the lowest rate due to their job income or the highest rate due to the amount of money?
If you did sell your cryptocurrency assets and have realized your gains. Those realized gains are now taxable income and will be taxed as ordinary income since it's short term. So you sir will be up for a big tax bill especially if you live in a state that has state taxes. By the way. congrats.
You guys are the best tax gurus on youtube!
Keep up the great work Positive Vibes to you and all your viewers
Thanks for saying that ❤️💯
The biggest problem is that the rules keep changing. Whatever plans you have now can change 4 years later. All of a sudden you go from not owing taxes to owing taxes on every dollar.
Thank you for this video Ive subcribed and continue to expand my knowledge
Welcome to LYFE! Glad you subscribed, let us know if you have any questions through out the way please?
I learn a lot from ur channel without going to any college. Thank u and keep up with teaching good knowledge 😍😍😍
Question: Let's say I buy one share of Apple on January 1, 2020. Then, on June 1, 2020 I buy another (one) share of Apple so now I have 2 shares of Apple. Later on January 15, 2021 I sell both shares. Does one count as "long term capital gain" and the other as "short term"??? or are both counted as long term based on the first share that I bought? How does this work? Thanks in advance!
Yup so one would count as a long-term gain and the other will count as a short term gain
That's a good question. Another would be which one would they say you took first. I believe they will tax it as Last In First Out so you pay as much taxes as possible.
learn something new today. Thank you!
Great video, very informative. Thank you!
Glad it was helpful! thanks for the comment
Great Vid! To help people even more understand the historical context, pleases include other stats and visuals like the population. In 1776, there were only 2 million people in USA! That’s the reasons why we need more income money and taxes is because we have more things to do.
Thanks for sharing!!
Hi..., I am in Pheonix, AZ. Do capital gain tax apply to mobile homes...? I bought the MH 4yrs ago and have been paying the taxes on it, the thing is... That I had a problem getting the title transferred to me for the longest time. I FINALLY got the title transferred 6 months ago and now I'm selling the MH at a nice profit. The land is leased at $600, and I was a private buyer that bought from a private seller... I already bought another home in FL. 4 months ago and plan on moving there when this is sold... Can the Capital G tax (if any) be deferred to the new home...??? I am unemployed. 56yrs old. And these are primary residents for me... It does show on the community lease that I have been here since 2017, but the tax office has the previous owner on their records paying the taxes up until 2021... Am I screwed...😣
WORRIED...😓
Keep 'em coming!
That's the plan!
If I’m exempt from capital gain do I needs to report to my CPA about my exempt?? Or do IRS send me any form saying I’m exempt ?? Please explain how do I know if I’m exempt or not??
Great video man ty
No problem 👍
This was very informative and well thought out. Thank you for the great effort!
Glad you enjoyed it! Just curious, which part did you find most informative?
@@LYFEAccounting Do you still have to pay long term capital gains tax on a house that you own for 9 years and your on disability?
Thank you for the information.
can we get exemption for having two flats out of capital gain? sec 54 and 54 F differs. i think that from ay 20_21 we have option to have two flats out of capital gain.kindly advice.thanks
Thank you. I watched the entire video and it helped a lot.
Thanks for the explanation... that helps!
You are very welcome
Biden is the gift that keeps on giving with his crazy proposals. 🤷🏻♀️
😂😂😂
Am I understanding you when you said that "capital gains are tax free in a year when you have no income"? (min 10:40).
That seems very favorable to a wealthy person who has Millions in Short term or Long term cap gains, no tax.
Unfavorable to a low income person who may earn 20K in income and also capital gains; they'll pay more CG tax than the wealthy? How unfair!
Please clarify. Thanks.
Is disability taxable with capital gains on sell of a property long term after a year of owenership?
Hi I sold investment property
I didn’t do 1031 exchange
I am merry And renting my primary residence(is no my)
What will be my tax rate
This was a longtime investment.
So good! Thanks.
Great info super easy to understand thanks!!
🙌🏽 you’re welcome!
Hey here's my question if I filed my taxes already for 2021 and sold a piece off land do i refile my taxes or does it goes to my 2022 taxes when I file thank you
Very informative!
When a mutual fund in a tax deferred account distributed long and short term capital gains is that gain treated as ordinary income or is it treated at the more favorable long term capital gain rate?
Very well explained
This pertains to home ownership. Can you give example of brothers on tile. My bro helped my refi Jan 2020 and in turn he was apparently placed on title. So after 2 yrs he would get the $250000 exemption correct? Then I get the $250000 exemption of course as I have owned for 20 yrs. His cost bases the same as mine? We owe 200000 and sell for 1000000 having $800000 in profit. What does cap gains look like in this scenario?
Question if I made a million dollars off a stock and I’m in the 12% tax bracket... I would only pay 12% tax on the million dollars I made and not 37%
It depends on how long you held before selling. Over a year is taxed at long-term capital gains tax rates and under a year is taxed at ordinary income tax rates.
question, if I have 20 year old stocks giving out yearly dividends exceeding Millions and yearly taxed at 20%... can I get another citizenship and renounce my American passport and pay exit tax and retain my current stocks and live in a tax friendly country? thanks
Good explanation, Thank you. However your presentation is incomplete. You did not explain why capital gains tax rates on long-term investments are lower than ordinary income and short-term capital gains. If people understand why capital gains tax rates on long-term investments have to be lower, there would be almost no support to increase it. The reason long-term capital gains tax rates are lower is because of the effect that inflation has on your long-term return. Because inflation erodes our real return over the long term, it stands to reason that the tax should be lower to compensate.
This is a crazy tax hike proposal
I subscribed, you are so helpful to so many people I know. Thank you so much. One of the common questions my friends ask is after they fully depreciate their dream car (using the 1 year accelerated depreciation and waiting 2 years for capital gains), how are they able to transfer that dream car from a company car to solely being a personal use vehicle without paying any money or taxes in the transfer. I understand the vehicles' repairs and insurance will no longer be deductible for the business as it is now a personal vehicle, however a new company vehicle can be purchased instead and you can now enjoy your dream car. I believe a lot of people get mixed up with this and end up getting heavily taxed, whether it be capital gains tax or depreciation recapture. Can you explain the process please.
If the car is given to the owner for no charge, you must be certain to properly classify the transfer as either compensation to the owner to the extent it is for services provided, or as a distribution on which you, the owner, will pay tax to the extent the value of the car exceeds (what you paid)
@@LYFEAccounting so if you purchase a vehicle for your business, you use accelerated depreciation to fully depreciate it in the first year, you wait an entire second year so you don't get capital gains tax, and after that you, as the owner of the business gifts the car to yourself for free and by claiming it as compensation for work, you don't have to pay any taxes or money on it? Can you explain that because the compensation for work sounds like alternative income but also there's gift taxes that may be affected since its gifted for free (but in compensation??)
When do businesses get treated like assets and have to pay capital gains tax? Dont businesses constantly realize their gain just by making profits? Im not well knowledged in this subject so Im confused because you mentioned businesses being liable to capital gains.
You pay capital gains tax on a business when/if you sell the business.
Hey there! Hope this reaches you! I had a question i could really really use some help on.
I have currently made roughly 30k in income this year. I am now on unemployment. Will income from unemployment bump me up tax bracket? The research i have done points me to no as unemployment is not “earned income”
Any and all help would be greatly appreciated! Thanks in advance!
Unemployment is taxed as regular income. However, you may end up paying no taxes if you live in a state free state. Where do you live?
@@LYFEAccounting so i will end up paying the 15% correct? I live in California
I will have owner my home for just over a year and now selling. What about a section 121 home exclusion? Thanks for the help by the way
Thanks for sharing shalom 🌹
Fantastic. How do capital gains taxes impact taxpayers in states such as Nevada or Florida?
capital gains taxes is a federal tax, so it applies the same in all states
@@LYFEAccounting that makes me a bit sick to my stomach taxes 😬
Have anyone figured out what's the reason for people who make more money should pay a higher tax % ?
You have any thoughts on it?
@@LYFEAccounting I havn't figured it out so I'm asking if someone else has some logic to present so I can learn
Thanks
👍👍👍👍👍👍👍👍
No problem 👍
Excellent video!! Thank you for breaking it down for us.
It is my absolute pleasure, Thomas. I hope you are subscribed? :)
Great video, very informational! What if someone made less than $20,000 a year in regular wage income, but made $1.5 million in 5 months in cryptocurrency for an example. Would they be taxed at the lowest rate due to their job income or the highest rate due to the amount of money?
Pretty sure it would be taxed at the 20,000 year
@@LYFEAccounting Thank you for the response!
If you did it all in 5 months then it would all be short term capital gains, which are taxed at ordinary rates
If you did sell your cryptocurrency assets and have realized your gains. Those realized gains are now taxable income and will be taxed as ordinary income since it's short term. So you sir will be up for a big tax bill especially if you live in a state that has state taxes. By the way. congrats.
@@LYFEAccountingfor an example like me , I have no wage income but I earned 20k from etf dividends and interests this year will I be taxed 😊?
Can you explain Capital gain Losses
I think you just mean a capital loss? Interesting suggestion
I Love Watching You Guy’s Videos!! Cryptocurrency Would Also Be Subject To Capital Gains As Well, Correct?
At the moment yes, cryptocurrency is treated as property
Pick me pick me SEAN I want to play Hold OR Sell 🤣 Dude this video is hella educational and entertaining. Thanks
Haha thanks, Andy! Glad you appreciate it 💯
I hope they regret putting Biden in office 😤
This is outrageous!
I guess we’ll have to wait and see if it actually happens
WHEN DID JOE BIDEN'S TAX PLAN GO INTO EFFECT ???
🇱🇷🇱🇷🇱🇷🇱🇷🇱🇷
common Biden L
That was very good information, thank you so much!
Thank you for this information!
Our pleasure. Thanks for watching!