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  Tax Preparation and Filing

Whether you’re a self employed individual or filing as a corporation, get peace of mind with taxes done correctly and efficiently. (Get More Info)

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Whether you’re facing tax levies, liens, or garnishments, don’t face the IRS alone. We may even be able to arrange a reduced payment. (Get More Info)

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Need help registering your new business as an LLC, corporation, or partnership registration? Keep it simple – let us help! (Get More Info)

  ITIN Application

Do you need an Individual Tax Identification Number(ITIN)? We are authorized by the IRS to assist you in obtaining one. We can help! (Get More Info)

  Accounting and Bookkeeping

If you’re not a bookkeeper or accountant, spending time on this task is decreasing your profits! Our services can help your business grow! (Get More Info)

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Payroll is a hassle and a huge time drain for small businesses. Let us help with all aspects of your payroll processing (Get More Info)

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When you need notary services, we’re your trusted partner. We provide fast service for your notary needs. (Get More Info)

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Contact Information
KF Tax & Accounting, P.C.

1970 Rawhide Drive, Suite 204
Round Rock, Texas 78681

Tel:  512-244-1516
Fax: 512-244-1567

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Capital gains and losses

Posted by kftaxaccounting2014 on March 10, 2015 in Reducing Taxes | 5 comments

Every individual that own properties either for personal use or as an investment is subjected to capital loss or gain. Having this at the back of your mind is really important because it helps you deal with the tax consequences of owning and selling of capital assets. Here are some facts you should know about capital gains and losses.

Firstly, you should know that capital assets include properties like your home, cars…. also investments like bonds, stocks etc. The difference between your basis (which is the amount you obtained your asset) and the amount you sell your asset determines if it’s a capital loss or gain. In addition, all capital gains must be included in your income and is subjected to net investment income (NII) tax. The NII tax rate is 3.8% and it applies to certain net investment income of individuals, estates and trusts that have income above statutory threshold amount. In addition, you can deduct capital losses on the sales of investment properties and not on properties you held for personal use.

Furthermore, you should know that the length of time you hold your properties determines if it’s short or long term capital gains or losses. If held for less than a year, it is short term and if it’s more than a year, it is classified as long term. You will have a net capital gain if your net long-term capital gain is more than your net short-term capital loss. The capital gain tax solely depends on your income, and the maximum net capital gain tax rate is 20%.Some people will have to pay a 25% or 28% tax on certain type of capital gains, but a zero to 15% is what applies to most taxpayers.

Lastly, if your capital losses are more than your capital gains, the difference can be deducted on your personal tax return. The deductible amount is limited to $3,000 per year, but if you are married and filing your tax separately, then the deductible is only $1500. If your net capital loss is more than the deductible amount for the tax year, you can carryover your losses till the following tax year.

Filing a tax return with capital gains or losses can be confusing, let the tax experts help you, make an appointment with us today!

Director, Tax and Accounting
Tax Accountant specialized in Tax Accounting, IRS Representation & Resolution of Complex Tax Matters, Individual and Corporate Tax planning, and Tax Advisory Services.

Specialties: Tax Resolution, Tax Planning, Financial Planning and Analysis, Budget Management, Payroll Management, Cost Management and Optimization, SAP, Oracle, Hyperion, PeopleSoft

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