Another Capitol Gains Question
I am still confused. I would like to start a rehabbing business. What do you do about capitol gains? Just take the hit every time you sell? I have asked other investors this question and the answer I get is, "You need a really good tax attorney." What is the tax attorney going to do? I almost feel like there is something I am not being told, that only insiders know. Seems like a lot of work to turn around and give the gov 25-30%.
What you have to remember is your total tax is on your "net" income after ALL business expenses (mileage, etc.) not the gross capital gain. My RE partner is whining about having to pay taxes this year on a potential net capital gain of $200,000, if all goes well. BOO HOO HOO! I asked him, "Would he turn down a $200,000 raise at his job because he didn't want to pay taxes on it?" Of course not! I also told him if he didn't want to pay taxes on the gain, give it ALL to me, I'll GLADLY pay the taxes on it! Like I tell my republican buddies who think Bush can keep cutting taxes and running up the deficit , there ain't no free lunch! :-D