United States » Taxes

Real Estate Tax	Transfer Tax	Income tax	VAT	Capital Gains Tax

Real Estate Tax

Thousands of knowledgeable real estate investors have sold their rental properties, such as apartments, commercial property, or a business property, and made IRC 1031 tax-deferred exchanges for single-family residences of equal or greater cost and equity. After owning and occupying the principal residence at least 24 of the 60 months before its sale, it can qualify for the IRC 121 principal residence sale tax exemption up to $250,000. 

Transfer Tax

This tax is required whenever real property is transferred from one owner to another. In most cases, it is based on $.55 per $500 of purchase price, or $1.10 per $1,000 of purchase price. 

Income Tax

A 15% sales tax on the final purchase of goods and services at the retail level. The National Sales Tax would be similar to state sales taxes. The rate should decline in future years to 10 to 12% as economic growth allows more revenue to be raised at a lower rate and government downsizing continues.

VAT

In USA, VAT is known as sales tax. Keep in mind that tax rates may have changed since it was prepared. City and county taxes aren't included, but can vary from 0% up to an additional 5% or so. Different states have different sales tax or VAT. In Florida VAT is 6%.

Capital Gains Tax

For most people, its rate is currently 15% for an elapsed time between purchase and sale of more than one year, and your normal tax rate for an elapsed time of 1 year or less. Captial Gains can be for any asset, common assets are stocks, bonds, or real estate. CGT is chargeable at rates of 10%, 20% or 40%. Whilst CGT is calculated separately from income tax, it is calculated by treating taxable gains as the 'top slice' of income. Trustees and personal representatives were liable to CGT at 34% for 2003/04.