Lee R. Schroeder is an Ohio licensed attorney with Schroeder Law LLC in Ottawa. He limits his practice to business, real estate, estate planning and agriculture issues in northwest Ohio. He can be reached at [email protected] or at (419) 523-5523. This article is not intended to serve as legal advice, and specific advice should be sought from the licensed attorney of your choice based upon the specific facts and circumstances that you face.
Often when people make a purchase, over time it appreciates in value. When that item is sold, the government taxes on the increase in the value of the property. The tax that is assessed is called capital gains tax. Sometimes capital gains taxes discourage people from selling property as they don’t want to pay the capital gains tax. As a result of this, the government has a process that will sometimes allow for for capital gains taxes to be delayed.
We pay income taxes on the money we earn.
Sometimes, we also make money by owning something that becomes more valuable before we sell it. When we sell something that increases (appreciates) in value, the government taxes us on the increase in value that we receive when we sell that something. The tax assessed against the money that is made from an asset increasing in value is called capital gains tax.
Read more about capital gains taxes and trading properties in Lee’s article in the Lima News here: Legal-Ease: Capital gains tax and trading properties
Source: LimaOhio.com, “Legal-Ease: Capital gains tax and trading properties,” by Lee R. Schroeder, March 5, 2016