Posted by dhermesc on June 25, 2012 at 11:20:23 from (24.248.193.103):
In Reply to: Not quite. posted by steve_in_mo on June 25, 2012 at 10:31:17:
Agreed.
But most people will see it in the form of a realestate transfer.
The excluded gain on the sale of a personal residence is included for the purposes of calculating this tax. So if Grandma sells the home that she and grandpa bought back in the 1950s for $20,000 and she clears $300,000 she won't owe any "income tax" on the sale but the 3.8% is calculated on 155,000 ($300,000-$125,000 (floor) -$20,000 (basis). So the federal government grabbed $5,890 that she was going to use to pay for the retirement home.
Or if she had a farm that she and her husband paid $50,000 back in 1955 and sold today for $500,000 she would have to pay tax on $325,000 or $12,350. ($500,000-$125,000 (floor) -$50,000 (basis))
We sell tractor parts! We have the parts you need to repair your tractor - the right parts. Our low prices and years of research make us your best choice when you need parts. Shop Online Today. [ About Us ]
Today's Featured Article - Third Brush Generators - by Chris Pratt. While I love straightening sheet metal, cleaning, and painting old tractors, I use every excuse to avoid working on the on the electrics. I find the whole process sheer mystery. I have picked up and attempted to read every auto and farm electrics book with no improvement in the situation. They all seem to start with a chapter entitled "Theory of Electricity". After a few paragraphs I usually close the book and go back to banging out dents. A good friend and I were recently discussing our tractor electrical systems when he stated "I figure it all comes back to applying Ohms Law". At this point
... [Read Article]
Latest Ad:
1945 Farmall wide body gas with pto and front plow. Runs good but needs new points.
[More Ads]
All Rights Reserved. Reproduction of any part of this website, including design and content, without written permission is strictly prohibited. Trade Marks and Trade Names contained and used in this Website are those of others, and are used in this Website in a descriptive sense to refer to the products of others. Use of this Web site constitutes acceptance of our User Agreement and Privacy Policy
TRADEMARK DISCLAIMER: Tradenames and Trademarks referred to within Yesterday's Tractor Co. products and within the Yesterday's Tractor Co. websites are the property of their respective trademark holders. None of these trademark holders are affiliated with Yesterday's Tractor Co., our products, or our website nor are we sponsored by them. John Deere and its logos are the registered trademarks of the John Deere Corporation. Agco, Agco Allis, White, Massey Ferguson and their logos are the registered trademarks of AGCO Corporation. Case, Case-IH, Farmall, International Harvester, New Holland and their logos are registered trademarks of CNH Global N.V.
