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How to potentially avoid capital gains taxes

Wouldn’t it be great to completely avoid taxes? Most people would say yes. But be careful for what you wish for, because there is essentially no such thing as living “tax free.” However, lowering one’s tax burden to an easy and predictable payment is completely reasonable. This is especially true when it comes to the sale of property or securities, because of the prospect of capital gains taxes.

For those unfamiliar with capital gains taxes, they are additional fees that can apply after the sale of property or securities results in a profit. However, there are some situations where profits can be realized without obligation to pay such taxes.

This post will highlight a few points that can help in reducing, or avoiding, capital gains taxes.

Property must be owned for at least one year – Essentially, you must own the property you seek to sell for a profit for at least 12 months.

Your taxable income must fall within a given threshold – It may be possible to avoid capital gains taxes if your income falls within the 10 percent or 15 percent tax rate. For married couples, this means that capital gains may not apply if your income is less than $74,900 after all deductions are considered and subtracted from one’s gross income.

Indeed, this means that an experienced tax lawyer must review your deductions and the exceptions that can apply to your income before capital gains are considered.

If you have further questions about reducing capital gains taxes, a seasoned tax attorney can help. 

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Law Offices of Charles R. Frazier
5258 Murfreesboro Road #B
La Vergne, TN 37086

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