Accountant Says I Dont Have To Pay Capital Gains
I did not have to pay Captial Gains according to my Accountant. This is my only business and i do real estate full time now. My Accountant said that since its my only form of income and i am considered a developer in a way and do not have to pay capital gains. Has anybody else heard of this?sounds good to me
is that less than paying Capital gains?
Quote:Depends on how much $$ you make/year. If you only make 10K per years your tax rate would probably be less than C.G. Taxes.samedwin,
Capital gains tax rate is always less than ordinary income tax rate. There is no tax bracket where the ordinary rate is less than the CG rate.
Now, the depreciation recapture tax rate is another story. Depreciation is recaptured at a 25% rate regardless of your ordinary income tax bracket.
I would look into a single member 401K -- This was suggested on another forum I was reading as being better, ie larger contribution limit and the over 50 makeup contribuition.
Craig