Word: gain
(lookup in dictionary)
(lookup stats)
Dates: during 1990-1999
Sort By: most recent first
(reverse)
Truman scholars are invited to attend a leadership workshop. Bohlmann noted that Truman scholars also gain future access to high-profile internships in Washington...
...taxes the recovered depreciation, in this case $20,000, at a rate of 25%. The rest of the gain is taxed at 20%. Where this really gets tricky is with installment sales. Tom Ochsenschlager, a tax partner with Grant Thornton in Washington, says taxpayers may choose one of two ways to apply the new rule. They may pay 25% on all gains received until the depreciation has been recovered, and then pay 20% on everything after that. Or they may pay a blended rate on all gains for as long as they receive payments...
Moving away from capital gains, the big new item is the way you get treated when you sell a house. Under the old rules, you paid no tax on a gain from the sale of your residence so long as you rolled the entire gain into another, more expensive house. You got a one-time exclusion of $125,000 if you were 55 or older. That exclusion typically was used late in life by empty-nesters...
That's no small consideration--especially in high-cost regions like California and the Northeast, where longtime homeowners may have gains of $1 million or more. "We have a number of people in that category," Mellon's Doyle points out. If they sold or went to contract on a new house before Aug. 5, they can still roll that $1 million-plus gain into a new residence and avoid a hefty capital-gains tax. But if their gain is under $500,000, they should take the new exclusion and not pile up a big gain in their new home...
...course, no one is suggesting that you give up income just to qualify for a tax break. But more than ever it may make sense to defer income into 1999. Among other things, that might mean not selling any stocks for a gain that you can't offset with a loss. Under the new rules, a house sale could send your income soaring. If you are a doctor or lawyer, you can begin slowing your billing process later in the year...