Selling your property or other assets can be a lucrative endeavor. Sellers should be aware that there could be tax implications from the gains on the sale of these assets. Unifirst Financial & Tax Consultants is a knowledgeable tax preparation firm that will guide you in preparing your taxes after the sale of your property. According to tax laws, anything extra you get from selling an asset at a price higher than the price you paid for it is called a capital gain. You are expected and required to report it on your taxes.
By working with a qualified tax preparer, you will receive the experience from a professional that will help you maximize your capital tax gains benefits. With more than enough experience in the field, Unifirst Financial & Tax Consultants has proven to be a top-notch competitor when it comes to tax preparation. However, before you decide to make this step, it is important to understand how capital tax gains are calculated.
CALCULATING CAPITAL TAX GAINS
To get a capital gain, you need to be well acquainted with the selling costs, deductible closing costs and lastly, tax basis on the property. You also need to be aware of the costs associated with improvements, depreciation, sales and more. Tax basis is found by adding the expenditures on purchases plus capital improvement costs to the selling prices followed by a deduction of any casualty or any deduction that might come as a result of insurance payments. Here is a summary of how to calculate capital gains tax.
FIRST STEP: Get the adjusted net basis
• Net adjusted basis = Initial purchase price + Improvements – Depreciation
SECOND STEP: Calculating Sales price of a capital gain
• The sales price of a capital gain = Sales price – Adjusted net Basis – sales costs e.g. commissions and fees.
THIRD STEP: Get the capital gain tax due
• Capital gain tax due = Recaptured Depreciation (25%) + Applicable Federal Capital Gain Rate + Applicable Medicare Surtax + State Capital Gain Rate
At Unifirst Financial & Tax Consultants, we take every opportunity to ensure that you understand what you are about to do, your expected gains and lastly, what you need to know about statutory laws on capital gains tax, relevant to the calculation. To get a clear understanding why you need a professional by your side here is a brief overview of the advantages of working with a highly qualified tax preparer.
MAXIMIZE YOUR CAPITAL GAIN TAX BENEFIT AND SAVE TIME
The main reason you need a tax professional is to help you avoid losing a larger part of your capital gain. You might not have a clue of how to do it, and the worst part is, lack of accuracy in your calculation might cost you a lot. At the same time, calculating capital gains tax is hectic and if you don’t have the time to do it, it is impossible to get the best out of it. Understanding what the IRS and tax agencies have in store for you requires time and some experience. If you don’t have this or you’re just unlucky to find someone to help you, you’ll be risking a lot.
THE BOTTOMLINE
Whether you are liquidating your assets to make some money or just because you are done with it, capital gains can prove quite beneficial. However, it isn’t easy to come up with the right estimation of what you actually deserve, especially if you are doing it for the first time and more companies out there are always ready to take advantage of your limited knowledge. You need a trusted firm who will ensure that you are satisfied with what you get, working closely with them and that they are someone who understands the capital gains calculation, statutory laws, updates by tax agencies and so much more.
If you are planning to sell a property and looking forward to maximizing your capital gains, working with Unifirst Financial & Tax Consultants is a guarantee that you’ll get all the capital gains benefits, that you deserve.
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