Tag: capital gains

How Can Home Improvement Projects Offset Taxes When You Sell?

Written by Paul Belfiore on January 26, 2024. Posted in Blog, Taxes.

Nashua, NH Homeowner Looks to Plan Ahead

When you sell your home, you will owe capital gains tax on any profit that you make. This is the difference between the price that you originally bought the house at and the amount that you get selling the property. If you have been at the property for a substantial amount of time, the taxable amount may be significant. Home improvement projects that add value to the property and / or prolong the home’s life can be subtracted from the sale price, reducing the amount that will be subject to the capital gains tax.

How are Dividends Taxed?

Written by Paul Belfiore on June 16, 2023. Posted in Blog, Taxes.

Nashua, NH Resident Wants to Be Prepared for the End of the Year

Dividends are typically considered taxable income for the year that they are received and will be taxed
at the end of the tax year. Even if the money was not received in cash, being reinvested buying more
shares, it will still need to be reported and will most likely be subject to taxes. How this money is taxed
depends on your taxable income and filing status. The dividends will be considered either nonqualified
or qualified. Qualified dividends usually have a lower tax rate, 0% 15%, or 20% depending on your
income level. Nonqualified dividends are taxed at the same rate as your regular income.

What Effect Do Stock Losses Have on Your Taxes?

Written by Paul Belfiore on December 15, 2022. Posted in Blog, Taxes.

Nashua, NH Taxpayer Has Questions

Capital losses from the sale of stock, mutual funds, and other investments can help to reduce your tax bill. If you had any capital gains over the year, this loss will first be used to offset the taxes paid on these gains. For those years where you are still at a capital loss, this deduction can reduce taxes on other income, including salary and interest. This excess deduction is capped at $3,000 per year. Any more than that amount can be carried over into subsequent years as a future tax deduction.

What is the Difference Between Long and Short-Term Capital Gains Tax?

Written by Paul Belfiore on December 24, 2020. Posted in Blog, Taxes.

Milford, NH Resident Looks for Insight

Short-term capital gains come from selling capital assets that have been owned for less than one year. The tax rate for this money is equal to your ordinary tax rate. Long-term capital gains are typically taxed lower than short-term. In 2020 this tax rate was either 0%, 15% or 20%, depending on your annual income. Selling stock, land or a business that has been in your possession for less than a year will significantly increase the amount of taxes you pay on these gains.