Capital gains tax Florida is imposed on those selling a capital asset. In order to arrive at the adjusted cost, the price paid for the asset is added to the adjustments made to the price. These adjustments are actually a few of the paid closing costs. The receipts of all such costs incurred must be preserved as proof.
Some of the included closing costs are as follows:
Fees of appraisers
Lawyer’s fees paid during building a house
Commissions paid to real estate agents
Money spent on setting up or other such constructions for improvements made to the house on sale
Florida capital gains taxes are controlled by the capital gains laws of Florida.
The adjusted costs of the home must be subtracted from the price at which the home is to be sold. The amount arrived at is the capital gains from selling the house and the capital gains tax of Florida is imposed on that amount.
According to the state law of Florida, a person can have $250,000 of his or her capital gains exemption from taxation. In case of married people, the amount has the potential of doubling itself. The eligibility of receiving such Florida capital gains tax exemptions is attained by staying in the house that is being sold for a period of 2 years out of the last five years. There are also exemptions for unforeseen circumstances offered by the Internal Revenue System. Such circumstances include medical exigencies, divorces and other such casualties.
The capital gains tax rate of Florida was imposed at a rate of 2.1% on the people falling under the income group of under $50,000 and at a rate of 1.9% for people under the income group of over $200,000. In the case of buying and selling of assets within a year, the tax on capital gains will be the same as tax on regular income. If the asset holding time span ranges between one to two years, then the capital gains tax Florida will be charged at the long term capital gains tax rate.
Last Updated on : 23rd June 2015