Question by  JMalligaPriya (62)

What are some basics about capital gains taxes and real estate LLC?


Answer by  maodan (74)

The term capital gains refers to any profit earned from the sale of property, stocks, investments, etc. You are required to report any capital gains earned during the year, which will be added to income and taxed at the appropriate rate. Real estate taxes, however, can be deferred to the purchase of another property.


Answer by  Att4372 (1704)

An LLC is a business entity. A real estate professional has ordinary income from sales and can deduct all business expenses against ordinary income. This income is subject to FICA (Social Security / Medicare). Capital gains are taxed at 15% for long term or marginal rate if short term. Expenses NOT deductable. You have one or the other, NOT BOTH.

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