cheapchinese

Basically this is a question, rather than an actual list I can come up with.
This came in mind, while i'm reading this book The millionaire Next door , by Thomas J. Stanley.
A gift from my sister for my achievements last semester.

Well, what are they?
I'll make a similiar Thread Called,
List of Unrealized/non taxable income

I'll start off,

Income made from Job earning are taxable
Capital Gains from realestate when you sell are taxable (some At this time, you can get $250,000 in profits tax-free for an individual or $500,000 for joint filers in property gains over your original purchase price if you have lived in the property as your primary residence for an agregate two of the five years prior to the sale.) ===edited
Selling Stocks taxable
Selling Mutual Funds/Dividend (thats why you should use DRIP*) ==== added
Estate Tax - what is the limit so its going to be gift instead???


*DRIP = Dividend reinvestment plan
I think this would help on people that wants to start investing/saving money in the long run; which the book indicates i should start doing

guiseppewv

I don't think captial gains from real estate are all taxable. If you have lived in the property for 2 of the last 5 years there is a certain amount of gain which is tax free. I'll have to check into this.

cheapchinese

edited....
but i would really like to add more on the list

zippyjuan

At this time, you can get $250,000 in profits tax-free for an individual or $500,000 for joint filers in property gains over your original purchase price if you have lived in the property as your primary residence for an agregate two of the five years prior to the sale. If you save receipts for home improvements (replacing carpet dosen't count), you can add those costs to your initial value (cost basis) of your house or condo.

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guiseppewv

Thank you!!!

cheapchinese

thanks &
I edited my OP

sizemic1

Is this a one time tax break or could you continously buy and sell your primary residence every two years and take the profits tax free?

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zippyjuan

As long as you lived in it at least two years after you bought it- should be fine.

cheapchinese

vary by state though

cause cali is just one year restriction.. have to be over 1 year.. even if its a day over

guiseppewv

Why would you want to do this? And, yes, on your federal tax returns you could do this if you sold your house and bought a new house every 2+ years.