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Lev
Lev, Tax Advisor
Category: Tax
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Can all Local taxes be deducted What is the formula for the

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Can all Local taxes be deducted?
What is the formula for the computation of capital gain?

LEV :

Hi and welcome to Just Answer!

LEV :

 


Local taxes are deducted depending on their types. Most are deducted on the schedule A if you itemize - www.irs.gov/pub/irs-pdf/f1040sa.pdf .


Real estate taxes – are reported on the line 6


Personal property taxes (car, etc) – on the line 8


Local income taxes or sales taxes – are reported on the line 5 – you may not deduct both – but should choose which one to claim.

LEV :

Capital gains are generally reported on the schedule D – part I or II depending if the property was held more or less than a year.


The gain is calculated as (selling price) – (adjusted basis)


The basis is mainly purchase price (assuming the property was purchased) adjusted by purchase and sale expenses, improvement and some other expenses.

LEV :

Let me know if you need any help or clarification.

Lev and other Tax Specialists are ready to help you