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Tax Feb 2014 - "Careful Treatment of Property Sales Can Yield Tax Savings"

Tax Feb 2014 - "Careful Treatment of Property Sales Can Yield Tax Savings"

Tax Feb 2014 - "Careful Treatment of Property Sales Can Yield Tax Savings"

Excerpt


Careful Treatment of Property Sales Can Yield Tax Savings



The question of whether the sale of property will yield capital gains or ordinary income is an important tax consideration. Currently, the maximum individual rate on ordinary income is 43.4 percent, yet it is only 23.8 percent on long-term capital gains. With a potential tax rate difference this large, determining the proper treatment of property sales is vital. The problem in making a determination is that it depends on a variety of factors. There are no clear or easy answers.


 


 



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