Home › Forums › Financial Markets/Economics › Suggestions needed: should we pay Capital Gain tax this year or do 103x?
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April 14, 2008 at 2:57 PM #12427April 14, 2008 at 7:01 PM #187186EconProfParticipant
BobS
Capital gains tax will likely go up from current 15% federal to 25%+ under a Democrat; may even go up under McCain, but perhaps only to 18 – 20%.
Paying it now under current tax rate has its advantages:
Lower rate now, plus you are not compelled to rush into a perhaps misguided upleg purchase with their strict deadlines, pressure to buy, etc.
Don’t forget that CA has one of the harshest treatments of cap gains in the nation. I just sold a commercial property I held for 25 years. Sheltered some of the proceeds with a 1031 for some of the gains. Still paid plenty to the feds and about 2/3 that amount to the state.
Your decision should rest upon your view of the market in the time frame you would hold the upleg, your view of today’s and tomorrow’s interest rates, etc. This is a big decision, and worth a session with your accountant.April 14, 2008 at 7:01 PM #187205EconProfParticipantBobS
Capital gains tax will likely go up from current 15% federal to 25%+ under a Democrat; may even go up under McCain, but perhaps only to 18 – 20%.
Paying it now under current tax rate has its advantages:
Lower rate now, plus you are not compelled to rush into a perhaps misguided upleg purchase with their strict deadlines, pressure to buy, etc.
Don’t forget that CA has one of the harshest treatments of cap gains in the nation. I just sold a commercial property I held for 25 years. Sheltered some of the proceeds with a 1031 for some of the gains. Still paid plenty to the feds and about 2/3 that amount to the state.
Your decision should rest upon your view of the market in the time frame you would hold the upleg, your view of today’s and tomorrow’s interest rates, etc. This is a big decision, and worth a session with your accountant.April 14, 2008 at 7:01 PM #187236EconProfParticipantBobS
Capital gains tax will likely go up from current 15% federal to 25%+ under a Democrat; may even go up under McCain, but perhaps only to 18 – 20%.
Paying it now under current tax rate has its advantages:
Lower rate now, plus you are not compelled to rush into a perhaps misguided upleg purchase with their strict deadlines, pressure to buy, etc.
Don’t forget that CA has one of the harshest treatments of cap gains in the nation. I just sold a commercial property I held for 25 years. Sheltered some of the proceeds with a 1031 for some of the gains. Still paid plenty to the feds and about 2/3 that amount to the state.
Your decision should rest upon your view of the market in the time frame you would hold the upleg, your view of today’s and tomorrow’s interest rates, etc. This is a big decision, and worth a session with your accountant.April 14, 2008 at 7:01 PM #187243EconProfParticipantBobS
Capital gains tax will likely go up from current 15% federal to 25%+ under a Democrat; may even go up under McCain, but perhaps only to 18 – 20%.
Paying it now under current tax rate has its advantages:
Lower rate now, plus you are not compelled to rush into a perhaps misguided upleg purchase with their strict deadlines, pressure to buy, etc.
Don’t forget that CA has one of the harshest treatments of cap gains in the nation. I just sold a commercial property I held for 25 years. Sheltered some of the proceeds with a 1031 for some of the gains. Still paid plenty to the feds and about 2/3 that amount to the state.
Your decision should rest upon your view of the market in the time frame you would hold the upleg, your view of today’s and tomorrow’s interest rates, etc. This is a big decision, and worth a session with your accountant.April 14, 2008 at 7:01 PM #187246EconProfParticipantBobS
Capital gains tax will likely go up from current 15% federal to 25%+ under a Democrat; may even go up under McCain, but perhaps only to 18 – 20%.
Paying it now under current tax rate has its advantages:
Lower rate now, plus you are not compelled to rush into a perhaps misguided upleg purchase with their strict deadlines, pressure to buy, etc.
Don’t forget that CA has one of the harshest treatments of cap gains in the nation. I just sold a commercial property I held for 25 years. Sheltered some of the proceeds with a 1031 for some of the gains. Still paid plenty to the feds and about 2/3 that amount to the state.
Your decision should rest upon your view of the market in the time frame you would hold the upleg, your view of today’s and tomorrow’s interest rates, etc. This is a big decision, and worth a session with your accountant.April 14, 2008 at 10:08 PM #187290SD RealtorParticipantJennifer this is a tough one without having a look at all the cards on the table. For instance, many people believe that a balanced portfolio is a cornerstone for investing. A mix of securities, perhaps bonds as well, some real estate, etc… So your question is one that is very narrow but the answer could depend on alot of other factors including your overall strategy. Will your tax bracket be the same in 10 or 20 years as it is now? It sounds like you already sold the property? Had you already identified the 1031 property you want to exchange into? Is the money with an accomodator? My point is that if you have already done the sale but have not stored the money with an accomodator then the decision is already made, you must take the tax gain.
The other issue at hand is what would your 1031 strategy be? Are you looking at buying a single family home? a condo? multiple properties? Would you be looking for appreciation or income?
There are way to many questions to give you a qualified answer. Without knowing all the factors involved my advice would be to listen to your CPA. Sounds like he has been doing a good job these many years especially if you are in the highest tax bracket.
April 14, 2008 at 10:08 PM #187310SD RealtorParticipantJennifer this is a tough one without having a look at all the cards on the table. For instance, many people believe that a balanced portfolio is a cornerstone for investing. A mix of securities, perhaps bonds as well, some real estate, etc… So your question is one that is very narrow but the answer could depend on alot of other factors including your overall strategy. Will your tax bracket be the same in 10 or 20 years as it is now? It sounds like you already sold the property? Had you already identified the 1031 property you want to exchange into? Is the money with an accomodator? My point is that if you have already done the sale but have not stored the money with an accomodator then the decision is already made, you must take the tax gain.
The other issue at hand is what would your 1031 strategy be? Are you looking at buying a single family home? a condo? multiple properties? Would you be looking for appreciation or income?
There are way to many questions to give you a qualified answer. Without knowing all the factors involved my advice would be to listen to your CPA. Sounds like he has been doing a good job these many years especially if you are in the highest tax bracket.
April 14, 2008 at 10:08 PM #187341SD RealtorParticipantJennifer this is a tough one without having a look at all the cards on the table. For instance, many people believe that a balanced portfolio is a cornerstone for investing. A mix of securities, perhaps bonds as well, some real estate, etc… So your question is one that is very narrow but the answer could depend on alot of other factors including your overall strategy. Will your tax bracket be the same in 10 or 20 years as it is now? It sounds like you already sold the property? Had you already identified the 1031 property you want to exchange into? Is the money with an accomodator? My point is that if you have already done the sale but have not stored the money with an accomodator then the decision is already made, you must take the tax gain.
The other issue at hand is what would your 1031 strategy be? Are you looking at buying a single family home? a condo? multiple properties? Would you be looking for appreciation or income?
There are way to many questions to give you a qualified answer. Without knowing all the factors involved my advice would be to listen to your CPA. Sounds like he has been doing a good job these many years especially if you are in the highest tax bracket.
April 14, 2008 at 10:08 PM #187348SD RealtorParticipantJennifer this is a tough one without having a look at all the cards on the table. For instance, many people believe that a balanced portfolio is a cornerstone for investing. A mix of securities, perhaps bonds as well, some real estate, etc… So your question is one that is very narrow but the answer could depend on alot of other factors including your overall strategy. Will your tax bracket be the same in 10 or 20 years as it is now? It sounds like you already sold the property? Had you already identified the 1031 property you want to exchange into? Is the money with an accomodator? My point is that if you have already done the sale but have not stored the money with an accomodator then the decision is already made, you must take the tax gain.
The other issue at hand is what would your 1031 strategy be? Are you looking at buying a single family home? a condo? multiple properties? Would you be looking for appreciation or income?
There are way to many questions to give you a qualified answer. Without knowing all the factors involved my advice would be to listen to your CPA. Sounds like he has been doing a good job these many years especially if you are in the highest tax bracket.
April 14, 2008 at 10:08 PM #187355SD RealtorParticipantJennifer this is a tough one without having a look at all the cards on the table. For instance, many people believe that a balanced portfolio is a cornerstone for investing. A mix of securities, perhaps bonds as well, some real estate, etc… So your question is one that is very narrow but the answer could depend on alot of other factors including your overall strategy. Will your tax bracket be the same in 10 or 20 years as it is now? It sounds like you already sold the property? Had you already identified the 1031 property you want to exchange into? Is the money with an accomodator? My point is that if you have already done the sale but have not stored the money with an accomodator then the decision is already made, you must take the tax gain.
The other issue at hand is what would your 1031 strategy be? Are you looking at buying a single family home? a condo? multiple properties? Would you be looking for appreciation or income?
There are way to many questions to give you a qualified answer. Without knowing all the factors involved my advice would be to listen to your CPA. Sounds like he has been doing a good job these many years especially if you are in the highest tax bracket.
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