Search results
Results from the WOW.Com Content Network
Basis (or cost basis), as used in United States tax law, is the original cost of property, adjusted for factors such as depreciation. When a property is sold, the taxpayer pays/(saves) taxes on a capital gain /(loss) that equals the amount realized on the sale minus the sold property's basis.
States and localities collected poll taxes on voters and property taxes on land and commercial buildings. In addition, there were the state and federal excise taxes. State and federal inheritance taxes began after 1900, while the states (but not the federal government) began collecting sales taxes in the 1930s.
It was thought that head taxes and property taxes (slaves could be taxed as either or both) were likely to be abused, and that they bore no relation to the activities in which the federal government had a legitimate interest. The fourth clause of section 9 therefore specifies that, "No Capitation, or other direct, Tax shall be laid, unless in ...
As the Tax Foundation writes, in 2014, the top 1% of taxpayers paid an average of 36.4% of their income in taxes — or about 5.6 percentage points less than in the 1950s.
For premium support please call: 800-290-4726 more ways to reach us more ways to reach us
Cost basis is key to understanding your tax obligations.
If a business uses a 20-year-old property which it owns, depreciation on a historical cost basis might be insignificant. However, the management accounts could show a notional rent payable, being perhaps opportunity cost - the amount the business could receive if it let the property to a third party.
Gains on real property exchanged for like-kind property are not recognized, and the tax basis of the new property is based on the tax basis of the old property. Before 1986 and from 2004 onward, individuals were subject to a reduced rate of federal tax on capital gains (called long-term capital gains) on certain property held more than 12 months.