Wanted to know how much will be my advance tax if i bought some property 2 and half year ago.
purchase price 7.7 million.Selling price 40 million.
- Wajahat asked 2 years ago
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Dear Wajahat,
It is 5% of your capital gains, in your case 5% of 30.23 Million. However it changes so often I recommend you check with your tax lawyer.
Jazak Allah
- Capt Shahnawaz answered 2 years ago
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Long-term capital gains (LTCG) on the sale of property that has been held for more than 1 year are generally taxed at a lower rate than short-term capital gains (STCG) on property held for less than a year. In 2021, the federal tax rate for long-term capital gains is up to 20% for those in the highest tax bracket.
Therefore, the advance tax on the LTCG of 32.3 million would be 20% * 32.3 million = 6.46 million
It’s important to note that the tax laws in the United States are subject to change and you should consult with a tax professional to get the most accurate and up-to-date information.
- asif345 answered 1 year ago
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