document.write( "<A HREF=/cgi-bin/jump-to-question.mpl?question=123238>Question 123238</A>: <I><SPAN STYLE=\"word-break: break-all;\"> Anyone knows how to do CAPITAL GAINS questions???\r<BR>\n" );
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document.write( "Please help me solve this!!!!!!!!!!!!Please!!!!!!!!!!!!!\r<BR>\n" );
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document.write( "If a house cost $600,000 and you have to pay capital gains tax (Ontario, Canada). How much would you have to pay, with a yearly income of $65,000 \r<BR>\n" );
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document.write( "This is the website for the Canadian Tax rate. <BR>\n" );
document.write( "http://www.2ontario.com/welcome/bctx_606.asp </SPAN>\n" );
document.write( "</I><HR><TABLE width=100%><TR><TD><B><A HREF=http://www.algebra.com/>Algebra.Com's</A> Answer #90417 by </B><A HREF=/tutors/aboutme.mpl?userid=solver91311><B>solver91311(24713)</B></A><img src=\"/images/stars/stars-13.gif\" alt=\"\" >&nbsp;<A HREF=/tutors/aboutme.mpl?userid=solver91311><IMG SRC=http://www.algebra.com/images/aboutme-small.gif BORDER=0 alt=\"About Me\" VALIGN=MIDDLE></A>&nbsp;<IMG SRC=http://www.algebra.com/cgi-bin/show-face.mpl?user=solver91311><BR>You can <A HREF=\"/cgi-bin/embed-solution.mpl?show=1&solution=90417\">put this solution on YOUR website!</A><BR><SPAN STYLE=\"word-break: break-all;\"> You can't answer this, or any of your other multiple submissions of the same question with the information given.\r<BR>\n" );
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document.write( "You need to know the cost basis of the house which is the amount you paid for it in the first place, plus the cost of any improvements.  Generally speaking,<BR>\n" );
document.write( "repairs are not improvements.  So if you added a room, that counts, but if the kid next door puts his baseball through your window, the cost of fixing the window doesn't count.  In the US, if you inherited the property, your cost basis is the fair market value of the property on the day the owner died -- which means if you sold it right away, you would have no capital gain at all.\r<BR>\n" );
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document.write( "Next you need to know the amount you received from the sale of the property.  This is the price someone paid you less all of the fees and commissions you had to pay to complete the sale.  There are rules for determining what counts and what doesn't -- check with your local tax office.\r<BR>\n" );
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document.write( "The difference between what you received and the cost basis is your capital gain.  In the US, capital gains come in two flavors, short term and long term -- depending on whether you held the property for more or less than one year.  Typically there is a short term capital gains rate that is independent of your income and a long term capital gains rate that is equal to the rate for your tax bracket.\r<BR>\n" );
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document.write( "Go see a tax professional to get your particular question answered. </SPAN>\n" );
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