I know its late but i have a tax/childsupport question?
Posted on Jan 27, 2012 with Comments 1
Buttercup=sweetness asked:
to make a long question short. If i purchased a vacant peice of land in 2001 for 25k and then sold it in 2006 for 85k wouldnt there be capital gain and wouldn’t that show in a tax return for 2006?
Is is possilbe that lawyers will manipulate forms to make things seem different than they are in the attempt to hid money?
Isn’t that illegal?
Reyes Duffee
to make a long question short. If i purchased a vacant peice of land in 2001 for 25k and then sold it in 2006 for 85k wouldnt there be capital gain and wouldn’t that show in a tax return for 2006?
Is is possilbe that lawyers will manipulate forms to make things seem different than they are in the attempt to hid money?
Isn’t that illegal?
Reyes Duffee
Filed Under: Law & Ethics
Yes that is a capital gain. Which is good. Lawyers can characterize things differently, but in this case why? A capital can is good. The top tax rate for a capital gain is 28% (and if I’m not mistaken, this would taxed at the lowest capital gain rate of 15%) If you reported that 60K as ordinary income it would probably push you into a different tax bracket (the highest tax bracket for ordinary income is 38%).
And in any case, manipulating forms in an attempt to hid income will almost always lead to an audit, which is just a huge hassle.