I sold stock for home improvement, now I have a huge capital gain tax liability. How can I reduce the tax due?
Hi,my name is Anne,I did the following:
Q&A: I sold stock for home improvement, now I have a huge capital gain tax liability. How can I reduce the tax due?
My wife and I have combined taxable income of about ,000. We have two children, and mortgage deduction. We sold stocks as part of a major renovation of our home. We have capital gains (mostly short term) of about ,000. A quick run through with Turbo Tax has me owing nearly ,000 in Federal tax. How can I reduce this, legally?
ANSWER:
Answer by botygy
Nothing, I’m afraid. After the fact or post mortem planning is rarely effective. Shoulda held the stock a year and a day–woulda saved you ,500.
Answer by jpr302001
The capital gains should only be 15%. Did you put in the correct bases of the original purchases?
Answer by taxreff
Unfortunately, the first answer to this thread is correct. The STCGs are taxable at ordinary rates, and the home improvements are not tax deductible.
Answer by newjerseyguy
Its too late now. Short term capital gains are taxable as ordinary income – didn’t you know that? Your renovations are not tax deductible either, though they might change your house cost basis when you eventually sell.
Answer by nova_queen_28
You really need to scrutinize your deductions and make sure you are taking advantage of everything possible. Review schedule A for anything/everything you can (medical, charity, unreimbursed employee expenses).
Unfortunately, with short-term gains you will pay more to Uncle Sam.
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