New Tax Laws For 2013

26 Jul New Tax Laws For 2013

New Tax Laws & Tips To Soften The Blow.

The highest tax bracket taxpayers , 39.6 % in 2013 , must pay a 20 % Long Term Capital Gains rate on long term gains exceeding the 250,000 gain for an individual and 500,000 for a married couple.

One way to lessen the impact of this is to create an installment sale to spread the gain over a number of years allowing you to only pay the capital gains rate on the portion of gain you receive each year.

IRS Publication 537 goes into the great details needed to follow to lessen the tax burden.

Here are a couple of the highlights contained within it and the publication itself so you can follow all the necessary steps to save on your income taxes.

Installment obligation. The buyer’s obligation to make future payments to you can be in the form of a deed of trust, note, land contract, mortgage, or other evidence of the buyer’s debt to you.

Seller-financed mortgage. If you finance the sale of your home to an individual, both you and the buyer may have to follow special reporting procedures.
When you report interest income received from a buyer who uses the property as a personal residence, write the buyer’s name, address, and social security number (SSN) on line 1 of Schedule B (Form 1040A or 1040), Interest and Ordinary Dividends.
When deducting the mortgage interest, the buyer must write your name, address, and SSN on line 11 of Schedule A (Form 1040), Itemized Deductions.

http://www.irs.gov/publications/p537/ar02.html
Structured Sales may also help :
http://en.wikipedia.org/wiki/Structured_sale