- Property taxes in California are based on an "acquisition value system" established by Proposition 13, where taxes are 1% of the property's value at the time of purchase. Taxes are paid twice a year.
- Under Proposition 60, homeowners aged 55+ can transfer their property tax basis to a new home if they buy a replacement home in the same county within 2 years of selling. Proposition 90 extends this to different counties that accept it.
- When determining capital gains from the sale of a primary residence, homeowners can exclude up to $250,000 for single filers or $500,000 for joint filers from gains if the home was their primary residence for 2 of the last 5 years prior
Now, finding for Kindersley Town House Condos won’t be a problem because the Marathon Equities Corp is here to help you. We guide you through the choicest Kindersley Town homes for sale and fetch you the greatest deals in properties. People looking for house rentals can also contact us. Call (403) 543-4040 to know more.
Now, finding for Kindersley Town House Condos won’t be a problem because the Marathon Equities Corp is here to help you. We guide you through the choicest Kindersley Town homes for sale and fetch you the greatest deals in properties. People looking for house rentals can also contact us. Call (403) 543-4040 to know more.
Proposition 19: Homeowner Tax Savings Everywhere in the State of CaliforniaLynne Watanabe-MacFarlane
Homeowners who are 55 or over, severely disabled, or whose homes were destroyed by wildfire
or natural disaster, may transfer the taxable value of their primary residence to a replacement
primary residence …
§ Anywhere in the state
§ Regardless of the location
§ Regardless of the value of the replacement primary residence — even if it’s greater in value
(with an upward adjustment in the tax basis if the replacement property is greater in value)
§ Within two years of the sale of the original primary residence
§ Up to three times (although there’s no limit for those whose houses were destroyed by wildfire
or natural disaster)
These rules are in effect on and after April 1, 2021
The information contained herein is
intended to provide general
information and is not intended as
a substitute for individual legal
advice. Specific examples used are
only general examples, and the
actual amount of property taxes
owed for any person will depend on
the specific situation of the
individual and a wide variety of
other factors. Therefore, all persons
are directed to seek the advice of
an attorney regarding their specific
tax and legal situation.
Business laws deal with the set of laws that are highly functional in resolving the domestic or foreign matters of business through a series of official materials, meetings, and other commercial agreements. Business lawyers help their clients glide through the allegation and other relevant matters of trade with their in-depth knowledge of the commercial laws. A business law student without properly dealing and understanding of the intricacies of business law case study would not be able to help their clients in future.
Web-https://myassignmenthelp.com/case-study/business-law-case-study.html
Proposition 19: Homeowner Tax Savings Everywhere in the State of CaliforniaLynne Watanabe-MacFarlane
Homeowners who are 55 or over, severely disabled, or whose homes were destroyed by wildfire
or natural disaster, may transfer the taxable value of their primary residence to a replacement
primary residence …
§ Anywhere in the state
§ Regardless of the location
§ Regardless of the value of the replacement primary residence — even if it’s greater in value
(with an upward adjustment in the tax basis if the replacement property is greater in value)
§ Within two years of the sale of the original primary residence
§ Up to three times (although there’s no limit for those whose houses were destroyed by wildfire
or natural disaster)
These rules are in effect on and after April 1, 2021
The information contained herein is
intended to provide general
information and is not intended as
a substitute for individual legal
advice. Specific examples used are
only general examples, and the
actual amount of property taxes
owed for any person will depend on
the specific situation of the
individual and a wide variety of
other factors. Therefore, all persons
are directed to seek the advice of
an attorney regarding their specific
tax and legal situation.
Business laws deal with the set of laws that are highly functional in resolving the domestic or foreign matters of business through a series of official materials, meetings, and other commercial agreements. Business lawyers help their clients glide through the allegation and other relevant matters of trade with their in-depth knowledge of the commercial laws. A business law student without properly dealing and understanding of the intricacies of business law case study would not be able to help their clients in future.
Web-https://myassignmenthelp.com/case-study/business-law-case-study.html
As a business owner in Delaware, staying on top of your tax obligations is paramount, especially with the annual deadline for Delaware Franchise Tax looming on March 1. One such obligation is the annual Delaware Franchise Tax, which serves as a crucial requirement for maintaining your company’s legal standing within the state. While the prospect of handling tax matters may seem daunting, rest assured that the process can be straightforward with the right guidance. In this comprehensive guide, we’ll walk you through the steps of filing your Delaware Franchise Tax and provide insights to help you navigate the process effectively.
Business Valuation Principles for EntrepreneursBen Wann
This insightful presentation is designed to equip entrepreneurs with the essential knowledge and tools needed to accurately value their businesses. Understanding business valuation is crucial for making informed decisions, whether you're seeking investment, planning to sell, or simply want to gauge your company's worth.
Discover the innovative and creative projects that highlight my journey throu...dylandmeas
Discover the innovative and creative projects that highlight my journey through Full Sail University. Below, you’ll find a collection of my work showcasing my skills and expertise in digital marketing, event planning, and media production.
Premium MEAN Stack Development Solutions for Modern BusinessesSynapseIndia
Stay ahead of the curve with our premium MEAN Stack Development Solutions. Our expert developers utilize MongoDB, Express.js, AngularJS, and Node.js to create modern and responsive web applications. Trust us for cutting-edge solutions that drive your business growth and success.
Know more: https://www.synapseindia.com/technology/mean-stack-development-company.html
Explore our most comprehensive guide on lookback analysis at SafePaaS, covering access governance and how it can transform modern ERP audits. Browse now!
Accpac to QuickBooks Conversion Navigating the Transition with Online Account...PaulBryant58
This article provides a comprehensive guide on how to
effectively manage the convert Accpac to QuickBooks , with a particular focus on utilizing online accounting services to streamline the process.
The world of search engine optimization (SEO) is buzzing with discussions after Google confirmed that around 2,500 leaked internal documents related to its Search feature are indeed authentic. The revelation has sparked significant concerns within the SEO community. The leaked documents were initially reported by SEO experts Rand Fishkin and Mike King, igniting widespread analysis and discourse. For More Info:- https://news.arihantwebtech.com/search-disrupted-googles-leaked-documents-rock-the-seo-world/
Cracking the Workplace Discipline Code Main.pptxWorkforce Group
Cultivating and maintaining discipline within teams is a critical differentiator for successful organisations.
Forward-thinking leaders and business managers understand the impact that discipline has on organisational success. A disciplined workforce operates with clarity, focus, and a shared understanding of expectations, ultimately driving better results, optimising productivity, and facilitating seamless collaboration.
Although discipline is not a one-size-fits-all approach, it can help create a work environment that encourages personal growth and accountability rather than solely relying on punitive measures.
In this deck, you will learn the significance of workplace discipline for organisational success. You’ll also learn
• Four (4) workplace discipline methods you should consider
• The best and most practical approach to implementing workplace discipline.
• Three (3) key tips to maintain a disciplined workplace.
Memorandum Of Association Constitution of Company.pptseri bangash
www.seribangash.com
A Memorandum of Association (MOA) is a legal document that outlines the fundamental principles and objectives upon which a company operates. It serves as the company's charter or constitution and defines the scope of its activities. Here's a detailed note on the MOA:
Contents of Memorandum of Association:
Name Clause: This clause states the name of the company, which should end with words like "Limited" or "Ltd." for a public limited company and "Private Limited" or "Pvt. Ltd." for a private limited company.
https://seribangash.com/article-of-association-is-legal-doc-of-company/
Registered Office Clause: It specifies the location where the company's registered office is situated. This office is where all official communications and notices are sent.
Objective Clause: This clause delineates the main objectives for which the company is formed. It's important to define these objectives clearly, as the company cannot undertake activities beyond those mentioned in this clause.
www.seribangash.com
Liability Clause: It outlines the extent of liability of the company's members. In the case of companies limited by shares, the liability of members is limited to the amount unpaid on their shares. For companies limited by guarantee, members' liability is limited to the amount they undertake to contribute if the company is wound up.
https://seribangash.com/promotors-is-person-conceived-formation-company/
Capital Clause: This clause specifies the authorized capital of the company, i.e., the maximum amount of share capital the company is authorized to issue. It also mentions the division of this capital into shares and their respective nominal value.
Association Clause: It simply states that the subscribers wish to form a company and agree to become members of it, in accordance with the terms of the MOA.
Importance of Memorandum of Association:
Legal Requirement: The MOA is a legal requirement for the formation of a company. It must be filed with the Registrar of Companies during the incorporation process.
Constitutional Document: It serves as the company's constitutional document, defining its scope, powers, and limitations.
Protection of Members: It protects the interests of the company's members by clearly defining the objectives and limiting their liability.
External Communication: It provides clarity to external parties, such as investors, creditors, and regulatory authorities, regarding the company's objectives and powers.
https://seribangash.com/difference-public-and-private-company-law/
Binding Authority: The company and its members are bound by the provisions of the MOA. Any action taken beyond its scope may be considered ultra vires (beyond the powers) of the company and therefore void.
Amendment of MOA:
While the MOA lays down the company's fundamental principles, it is not entirely immutable. It can be amended, but only under specific circumstances and in compliance with legal procedures. Amendments typically require shareholder
RMD24 | Debunking the non-endemic revenue myth Marvin Vacquier Droop | First ...BBPMedia1
Marvin neemt je in deze presentatie mee in de voordelen van non-endemic advertising op retail media netwerken. Hij brengt ook de uitdagingen in beeld die de markt op dit moment heeft op het gebied van retail media voor niet-leveranciers.
Retail media wordt gezien als het nieuwe advertising-medium en ook mediabureaus richten massaal retail media-afdelingen op. Merken die niet in de betreffende winkel liggen staan ook nog niet in de rij om op de retail media netwerken te adverteren. Marvin belicht de uitdagingen die er zijn om echt aansluiting te vinden op die markt van non-endemic advertising.
Buy Verified PayPal Account | Buy Google 5 Star Reviewsusawebmarket
Buy Verified PayPal Account
Looking to buy verified PayPal accounts? Discover 7 expert tips for safely purchasing a verified PayPal account in 2024. Ensure security and reliability for your transactions.
PayPal Services Features-
🟢 Email Access
🟢 Bank Added
🟢 Card Verified
🟢 Full SSN Provided
🟢 Phone Number Access
🟢 Driving License Copy
🟢 Fasted Delivery
Client Satisfaction is Our First priority. Our services is very appropriate to buy. We assume that the first-rate way to purchase our offerings is to order on the website. If you have any worry in our cooperation usually You can order us on Skype or Telegram.
24/7 Hours Reply/Please Contact
usawebmarketEmail: support@usawebmarket.com
Skype: usawebmarket
Telegram: @usawebmarket
WhatsApp: +1(218) 203-5951
USA WEB MARKET is the Best Verified PayPal, Payoneer, Cash App, Skrill, Neteller, Stripe Account and SEO, SMM Service provider.100%Satisfection granted.100% replacement Granted.
3.0 Project 2_ Developing My Brand Identity Kit.pptxtanyjahb
A personal brand exploration presentation summarizes an individual's unique qualities and goals, covering strengths, values, passions, and target audience. It helps individuals understand what makes them stand out, their desired image, and how they aim to achieve it.
2. REAL PROPERTY TAXES With the passage of Proposition 13, the California Supreme Court has defined property tax as " an acquisition value system ". Basically Proposition 13 has provided a "new" system.
3. Taxes are billed on a fiscal year, which is July 1 of each year to June 30 of the following year. Taxes are paid as follows: N ovember 1 – Due D ecember 10 @ 5:00 pm – Delinquent F ebruary 1 - Due A pril 10 @ 5:00 pm - Delinquent
4. Remember, when it comes to property tax, there is N o D arn F ooling A round with property taxes. Mr. & Mrs. Redman receive their 2003-2004 tax bill, and the total real property tax is $2,400. They pay $1,200 on November 1, 2003 and another $1,200 on February 1, 2004.
5. CHANGE IN OWNERSHIP STATEMENT Any person acquiring an interest in property subject to local taxation must notify the county Recorder or Assessor by filing a Change in Ownership Statement within 45 days of the date of recording or, if the transfer is not recorded, within 45 days following a written request from the Assessor.
6. PROPOSITION 13 Usually the Fair Market Value (FMV) is defined as the purchase price. Under Proposition 13 the property tax is 1% of the value at the time of purchase Each county may add an additional property tax to the 1%. Usually a county will add 0.25% to 1% more.
7. Mr. Smith purchased home for $300,000. Assume the property tax is 1.25% for the area. Thus his tax would be$3,750 per year or $1,875 every 6 months. In this class we will use 1.25% Under Proposition 13 the property value may be increased each year at an index rate determined by the California Industrial Relation's Board or 2%, which ever is the lesser.
8. Mr. Smith purchased home for $300,000. The first year he will pay $ 3,750 (300,000 x 0.0125) this year. Assume that index is increased by 2%. His new tax value for next year would be: $300,000 × 1.02 = $306,000. The taxes would be $3,825 per year ($306,000 × 0.0125) the next fiscal year.
9. Mr. Wilson purchased some land to build his home at a cost of $50,000. After six months of sweat and physical labor, he finished his home. The only costs was that of materials for $100,000. Total cost of the home was $150,000. Because of his ability and labor the home had a FMV (fair market value) of $250,000. The local county assessor could legally assess the home for $250,000.
10. PROPOSITION 8 Decline - in - Value Reassessment, approved by the voter in 1978. Allow taxable values of any property to decline below the factored base year value established by Proposition 13 to be reassed at the lower value.
11. Mr. Wilson purchased a property in 1989 for $250,000. The base year will be 1989 and will be placed on the tax rolls at $250,000. In 1991 Mr. Wilson found out that he could only sell his property for $150,000. In other words, his property declined in value by $100,000. He now can petition the county to have his property enrolled at the value of $150,000.
12. PROPOSITION 58 1. A principal residence (a home) on which there is a homeowner's exemption can be transferred to parent or child with no change in the real property basis. 2. The first $1,000,000 of other real property between parent and child is exempt from reassessment.
13. The code defines a child as a natural child (any child born of the parents), any stepchild or spouse of that stepchild as long as the relationship of stepparent and stepchild exists, a son-in-law or daughter-in-law of the parent(s) as long as the relation exists or a child who was adopted by the age of 18.
14. Mr. Wells wants his mom to purchase his home. His real property tax basis is $100,000. If his tax rate is 1½% (0.015) for his area, then his annual property tax will be $1,500 ($100,000 × 0.015). The home now has a FMV of $300,000. If mom buys the home without notifying the county, then her annual tax bill will be increase to $4,500 ($300,000 × 0.015). But, if she files a SBE Form PT-58, then she will retain her son's tax-basis and her annual tax bill will be $1,500. This is a savings of $2,000 per year.
15. If the property is NOT the transferor's principal residence and is $1,000,000 or less, then the transfer is excluded from reassessment. If the assessed value is more than $1,000,000, then the transfer must specify the amount and allocation of the exclusion on the claim.
16. DOCTRINE OF STEP–TRANSACTION If one transaction depends upon another transaction, that is, if you would not do the first transaction unless the second transaction is done, this is referred to as the doctrine of step-transaction and step-transactions are not allowed in real property tax transactions.
17. There are three members of the Doner family. Mom Doner, son Bob Doner and daughter Sally Doner. Bob wants to sell his property to his sister Sally and they want to keep the same property tax basis. So Bob sells the property to mom and shortly thereafter, mom sells to daughter Salley. Because this is a transfer between parent and child they feel they have accomplished their goal.
18.
19. PROPOSITION 60 Proposition 60 provides that a qualified homeowner aged 55 or older may transfer the current base-year value of his present principal residence to a new replacement (that is, to sell their old home and buy a new home), with these conditions.
20. 1. Both properties must be in the same county. 2. The claimant must be at least 55 years old as of the date of transfer (sale). If married one of the spouses must be 55 years or older 3. The original resident must be eligible for a homeowners' exemption at the time of sale (transfer).
21. 5. If the new home is bought before or on the same day of the sale of the old home, the purchase price of the new must be equal to or less than sales price of the old home. 4. The new home must be purchased within a two year period before the sale of the old home or within a two year period after the sale of the old home.
22. If the new home is purchased within the first year after the sale of the old home, the purchase price may exceed the sales price of the original residence by 5%. Finally, if the new home is purchased within the second year period of the sale of the old home, then the purchase price may exceed the sales price of the old home by 10%.
23. Sale of Old Residence 2 nd 1 st 0 1 st 2 nd Yr. Yr. Yr. Yr. = to or = to or 5% 10% less less Sold Purchased Real Property Tax Base Time Line
24.
25. If the old home had a real property assessed value of $75,000, the new home would have a real property tax basis of $75,000. If the property tax rate is 1.25% then the new property would have property taxes of $938 ($75,000 × 0.0125%) per year. If Mr. Prior doesn’t file for Prop 60, his property taxes would be $2,500 ($200,000 × 0.0125).
26.
27.
28.
29. PROPOSITION 90 Proposition 90 is an extension of Proposition 60. Proposition 90 allows the purchase of the new home in a different county in California. However, the county the homeowner is planning to move into may reject Proposition 90.
30. Alameda Modoc Contra Costa Orange Inyo Riverside Kern San Diego Los Angeles San Mateo Marin Santa Clara Ventura PROPOSITION 90 Counties that allow proposition 90.
31.
32. If she files a Form PT–60, Claim for Replacement Dwelling Base-Year Value Transfer , the county assessor's office will then transfer the $150,000 base-year value assuming that the transfer meets all of the other requirements.
33.
34.
35.
36. TYPES OF BASIS The starting point for all tax calculations on real estate property is the original basis. Original Basis – the purchase price plus buying costs
37. Depreciable Basis – the amount of the original basis that is allowed to be depreciated by tax law. Adjusted Basis – the original basis plus improvements less all depreciation taken. The basis will change over the time of ownership.
39. Question #1: Mr. Bowman has two homes, one in the city and one on the beach. He spends 4 days a week in city home and 3 days a week at his beach home. He decides to sell his beach home. Since it is his home, he does not have to pay income taxes on the sale the home at the beach. T rue or F alse F
40. A taxpayer (husband and wife) can only have one home (primary principle residence) at any one time. The primary principle residence is where the taxpayer spends most of the time.
41. Question #2: Mr. Avila owned his home (principle primary residence) for 1½ years and sells it. Since it is his home, he will not have to pay taxes on it. T rue or F alse F
42. A Taxpayer must own his home for two years. 365 + 365 + 1 = 731 more than 2 years.
43. PRINCIPAL PERSONAL RESIDENCE A person (husband & wife) can only have one principal personal residence at any one time. The principal personal residence is where the owner spends most of his/her time.
44. SECOND HOME All other personal residences are considered to be second homes. Second homes get no preferential tax treatment.
45. ORIGINAL BASIS OB = PP + BE Where: OB = Original Basis PP = Purchase Price BE = Buying Expenses NOTE: A Primary Principal Residence (home) cannot be depreciated, like an investment property.
46. Mr. Johnson purchased a home for $100,000 and paid $2,000 for buying expenses (closing costs). His original basis is: OB = $100,000 + $2,000 = $102,000
47. ADJUSTED BASIS AB = OB + CI Where: AB = Adjusted Basis OB = Original Basis CI = Capital Improvements
48. Mr. Stigler has an original basis of $102,000. During ownership he made a room addition for $20,000 and did landscaping, that cost $12,000. His adjusted basis is: AB = $102,000 + $32,000 = $134,000
49. GAIN G = SP – SE - AB Where: G = Gain SP = Sales Price SE = Selling Expenses AB = Adjusted Basis
50. Mr. Ball sells his home for $250,000 and it cost him $24,000 to sell the property. His adjusted basis is $134,000. G = $250,000 - $24,000 - $134.000 = $92,000
51. TYPES OF GAIN Realized Gain Recognized Gain Excluded Gain
52. Mr. Ball in the last example had a realized gain of $92,000. He will either recognize the gain, pay taxes on the gain, exclude the gain, or not pay taxes on the gain.
53. EXCLUDED GAIN A Single person can exclude $250,000 A married couple can exclude $500,000 To qualify for exemption, the home must have been a principal residence for at least 2 years during a five year period prior to the sale. Only one spouse must be the owner during this time period. But both spouses must have lived there for a 2 year period.
54. 1 2 3 4 5 X X Mr. Ball purchased a home and lived in it the 1 st year and the 2 nd year. He sells it in the third year. He qualifies for the exclusion EXAMPLE #1 OF THE EXCLUSION
55. 1 2 3 4 5 X X Mr. Ball purchase a home and lived in it the 1 st year and the 5 th year. Therefore he lived in the home two out of the last five years. He qualifies for the exclusion. EXAMPLE #2 OF THE EXCLUSION
56. Mr. Ball sold their home and had a gain of $52,000. They lived in the home for 5 years. Thus, they can exclude the $92,000 gain. Put it in his pocket and run. The full exclusion can be used once every 2 years.
57. Mr. Jandists (single) sells his home for $500,000. His adjusted basis is $100,000. His gain is: $400,000 = $500,000 - $100,000 He can exclude $250,000 and the remainder is taxable at capital gain rates. $400,000 - $250,000 = $150,000
58. CAPITAL GAINS Homes and investment properties receive special tax considerations. They are taxed as capital gain. There are two types of capital gain: (1) short term (2) long term. If a property is held for one year or less (short term), then it will be taxed at the 27% tax rate.
59. SHORT TERM Mr. Ford procures a house that he rents on April 15, 1999 and sells on April 15, 2000. Since the time held is exactly one year, it is short term and in the 27% tax bracket and if he has a $100,000 gain. The taxes would be $27,000.
60. LONG TERM If the property is held for more than one year it will be taxed as long term capital gains. The are two long term capital gain rates, and they are based on the client’s tax bracket.
61. If the seller is in the 15% tax bracket the capital gains will be taxed at 10%. If the client’s tax bracket is greater than 15%, the capital gains will be taxed at 15%.
62. Mr. Rooks (single) sells his home for $500,000. His adjusted basis is $100,000. His gain is: $400,000 = $500,000 - $100,000 He can exclude $250,000 and remainder is taxable at capital gain rates. $400,000 – $250,000 = $150,000 $150,000 × 15% = $22,500
63. REVIEW OF ORIGINAL BASIS OB = PP + BE Where: OB = Original Basis PP = Purchase Price BE = Buying Expenses
64. The ratio of building to land is usually determined from the property tax rolls. USING THE PROPERTY TAX BILL When examining what portion of the property is land and what portion is building. Remember you cannot depreciate land.
65. Edmund Riggs The County Tax Assessor 12345 E. Main St. Sunset City, CA 99999 Ms. Sarah Giocomo 1870 Elm Lane Sunset City, CA 99999 Date: 7/01/YY Land 3,000 Improvements 7,000 Total 10,000
66. % of Building: 7,000 ÷ 10,000 x 100 = 70% % of Land: 3,000 ÷ 10,000 x 100 = 30% Therefore, only 70% of the purchase price maybe depreciated.
67. DEPRECIABLE BASIS DB = OB x %I Where: DB = Depreciable Basis OB = Original Basis %I = Percentage of Improvements
68. Maria Hernandez purchased a residential fourplex for $490,000 and buying expenses of $10,000. It has been determined the building is 70% of the value of the property. The depreciable basis is: OB = 490,000 + 10,000 = 500,000 DB = 500,000 x 70% = 350,000
69. COMPUTING DEPRECIATION OF REAL PROPERTY There are two types of real property: 1. Residential (27.5 or 40 years). 2. Non-Residential (39 or 40 years)
73. John Jones purchased a residential fourplex on May 1 st this year. The DB is 350,000. Depreciation Schedule 3 2.879% 3.636% 4 2.576% 3.636% 5 2.273% 3.636% 6 1.970% 3.636% 7 1.667% 3.636%
74. 1 st year depreciation: 350,000 x 2.273% = 7,956 2 nd year and after: 350,000 x 3.636% = 12,726
75. Mr. O’Hara held the property for almost 10 years. He purchased it on June 1 st , he held the property 7 months the first year and 9 more years. He sold it December 31 st this year. The depreciable basis is $250,000. 1 st Year $250,000 x 0.01970 = $4,925 Additional years: 250,000 x 0.03636 = $9,090 $4,025 + (9 x $9,090) = $85,835
76. ADJUSTED BASIS AB = PP + BE + CI - D Where: AB = Adjusted Basis PP = Purchase Price BE = Buying Expenses CI = Capital Improvements D = Depreciation
77. Mr. Lawson purchased a fourplex for $490,000 and buying expenses of $10,000. He has made capital improvements of $60,000 and has taken $122,490 in depreciation. His adjusted basis is: AB = 490,000 + 10,000 + 60,000 - 122,490 = $437,510
78. GAIN G = SP - SE - AB Where: G = Gain SP = Sales Price SE = Selling Expenses AB = Adjusted Basis
79. Rental sold his fourplex for $750,000 and with expenses of $60,000, 6% for the agents and 2% for costs, a total of 8%. His gain is: G = 750,000 – 60,000 – 437,510 = 202,490
80. This gain is taxed at capital gain rates. Since the property was held for more than a year the property will receive long term capital gain treatment. Be taxed at the 15% rate. 202,490 x 15% = 21,261