Investment Property Virginia Beach
Drick Ward, Exit Realty Central – Virginia Beach, Norfolk, Chesapeake
Drick Ward, Exit Realty Central – Virginia Beach, Norfolk, Chesapeake

Why should taxpayers have to foot the bill of bad investments by banks?
I have a different idea for the bail out.
1) Freeze all CEO and upper management salaries and bonuses of the affected companies until we can determine who was at fault. Confiscate any funds that were illegally earned. Obviously, if we can re-write capitalism with a stroke of a pen, we can re-write legal contracts, too.
2) By the mortgages at 60% of their value. There is no reason that we should guarantee the value of the real estate in question, as it has lost value from the bubble “highs”.
3) Insure that individual living in homes are not foreclosed, but, make no special conditions for investors/speculators who were flipping homes for a quick profit.
4) Raise lending rates by 1 – 2 %(Prime) in order to put a premium upon loans.
You make an excellent suggestion, if this was the business world you were describing. It’s not. It’s the world of politics. Freddie Mac & Fannie Mae are government brokerage houses of which they pay for influence of politicians through the lobbying. The top 3 receivers of this money?
1) Chris Dodd – D Connecticut
2) Barack Obama – Presidential candidate
3. John Kerry – former presidential candidate.
Fat chance for reform here!
Well done on the others. First class thinking…comment on the last.
By raising the prime, you will tighten money supply. This is not good if you want to stimulate the economy. You want make keep the prime low to make it easy for businesses to get money. Well done though!
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How do you estimate what your capital gains tax would be on investment property?
This is a difficult situation. We own a piece of undeveloped land in FL and are considering selling to put a down payment on a house in CA. We have owned it for about 14 years. My husband is military and a FL resident. We currently are stationed in CA and I am a CA resident. The land is a joint tenancy. FL doesn’t have a capital gains tax, but CA does. So I am guessing that we have to split the gain 50/50 and have 50% taxed by the state of CA. We are trying to use an online capital gains tax calculator to figure how much we will have to pay.
We had an assesment to pave the street. Would that be an improvement cost?
Also, the state bought a small portion to widen a highway. Would the money they paid us be deducted from the basis?
How do you come up with the depreciation? My property value has went up (according to the county assessment).
How do you figure out what the tax rate is on the gain?
I know this is tough one, but I appreciate all the help.
If you file a joint CA return, ALL of the gain is subject to CA tax. If you file a separate return, only your half of the gain is taxed. The entire gain is subject to Federal capital gains tax.
The assessment raises your cost basis and therefore will lower the gain.
What the state bought constitutes a sale of part of the property. That was a taxable event when it occurred. You may or may not have taxable gain that needs to be claimed in the year of the sale. It will reduce your basis for the remaining portion of the property as well.
Land is never depreciated. No tax impact with that.
Since the property was held for over one year, the tax rate is 15% unless your marginal rate is 15% or less in which case it would be 5%. (Had you held it for 1 year or less it would be taxed at your marginal rate.) That’s the Federal rate. Not sure what the CA rate is. If I find it, I’ll post more later but it’s late and I’m heading to bed.
That was easy!
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