CAPITAL GAINS AND CAPITAL LOSSES
STILL DEDUCTIBLE
Naturally, everyone knows that capital gains are taxable. But, have you ever considered taking a capital loss, long or short term, in order to obtain a tax deduction? And, have you ever consider the fact that you may have it in your power to "create" that capital loss?
CREATING A CAPITAL LOSS
How can you "create" a capital loss and pay LESS IN TAXES because you exercised your power to create that loss? As an example, if you purchased a residential lot, some small acreage, or even improved real estate as an investment a number of years ago; and if the lot or real estate you purchased no longer holds the same promises for you as when you originally purchased it; if it has decreased in value, if the taxes or maintenance fees are unbearable; or if, for any other reason you are no longer interested in the property, you can "create" a capital loss by selling it for a token payment. For example, if you purchased a lot in some highly promoted subdivision for $3,000 a few years ago and if you sell that lot now for a token payment of $25.00, as an example, your loss would amount to $2,975.00.
THOUSANDS DELIBERATELY NOT PAYING TAXES
Tens of thousands of individuals who purchased property from some highly advertised and overly promoted real estate development years ago are finding they are not happy with their investment. Many of these people are "deliberately" not paying the taxes on the property for one reason or another and the property is being sold for non-payment of taxes resulting in a complete loss to the investor, in most cases. If you are one of these unfortunate individuals, you may be able to turn part of your loss into cash by selling your property for a token payment. This creates a capital loss and may result in substantial tax savings to you. Isn't this much better than taking a complete loss? Under the present rules, if you do not need to take all of your allowable deduction for this taxable year, you can even carry the deduction forward for future years. ISN'T THAT GREAT!
CONSULT YOUR TAX ACCOUNTANT OR ATTORNEY
You should consult your tax accountant or attorney to determine the exact benefits in your particular case. The rules, regulations, and laws seem to be changing almost daily and it takes a professional to keep abreast of the changes that affect you.
Copyrighted (c) Tax Research Foundation.
Investing in Tax Deeds Main Page
FL Statutes Chapter 197:Tax Collections, Sales, and Liens
Link to Florida's County Clerk's Offices, Property Appraisers & Tax Collectors
Notable Case regarding Notification of Owners
National Association of Counties
Tax Title Certification as a Substitute for Quiet Titles
Tax Deed Property Analysis Sheet
Attorneys who specialize in Tax Deeds & Quiet Title Actions
Jacksonville Office: (904) 384-1441; www.jaxfloridalaw.com
Flagler County Office: 386-453-7900: www.marksfrazier.com
Mr. Frazier is available to answer any questions you might have. Please call their office and speak to him or his assistant Terri. They are expecting to get a few calls from my class. Just tell them that you heard about him through Sandra Edmond of Ardnas, Inc and he'd be glad to give you any information you might need. Frazier has an office in Flagler County but you want to call the office in Jacksonville to talk to him directly. He has done Quiet Title Actions in North Florida as well as Central Florida, and other Florida counties.