Maxwells Chartered Accountants’ Post

Capital Gains Tax - You Only Have 60 Days Post Completion You must report and pay any tax due on UK residential property using a Capital Gains Tax on UK property account. You must do this within: 60 days of the completion date of selling the property. If you do not report and pay before the deadline you’ll be due a late filing penalty and may be charged interest if you do not do this by the 60-day deadline. This can be very expensive. f you miss the deadline by: -up to 6 months, you will get a penalty of £100 -more than 6 months, a further penalty of £300 or 5% of any tax due, whichever is greater -more than 12 months, a further penalty of £300 or 5% of any tax due, whichever is greater A 60-day CGT return is not required if the disposal has not resulted in a capital gains tax liability, for example if: -The residential property disposal has resulted in a capital loss -The gain (together with other residential property gains that have already happened in the same tax year) is within the annual capital gains tax exemption -Reliefs are applicable to the property disposal which reduces the taxable gain to nil -Capital losses are available to be used against the gain to reduce it to nil, either from previous tax years or from disposals in the current tax year, before the completion date Even if a 60-day CGT return has been filed and capital gains tax has been paid, the disposal will still usually need to be reported on the annual self-assessment tax return completed after the end of the relevant tax year. A credit will be given for the tax paid during the year. In most cases the 60-day return will have been filed on an estimated basis as income affecting the CGT rate will not be known until after the end of the tax year. If you need assistance with the return or any advice on CGT generally please get in touch https://lnkd.in/eW8chm3

Capital Gains Tax - You Only Have 60 Days Post Completion You must report and pay any tax due on UK residential property using a Capital Gains Tax on UK property account. You must do this within: 60 days of the completion date of selling the property. If you do not report and pay before the deadline you’ll be due a late filing penalty and may be charged interest if you do not do this by the 60-day deadline. This can be very expensive. f you miss the deadline by: -up to 6 months, you will get a penalty of £100 -more than 6 months, a further penalty of £300 or 5% of any tax due, whichever is greater -more than 12 months, a further penalty of £300 or 5% of any tax due, whichever is greater A 60-day CGT return is not required if the disposal has not resulted in a capital gains tax liability, for example if: -The residential property disposal has resulted in a capital loss -The gain (together with other residential property gains that have already happened in the same tax year) is within the annual capital gains tax exemption -Reliefs are applicable to the property disposal which reduces the taxable gain to nil -Capital losses are available to be used against the gain to reduce it to nil, either from previous tax years or from disposals in the current tax year, before the completion date Even if a 60-day CGT return has been filed and capital gains tax has been paid, the disposal will still usually need to be reported on the annual self-assessment tax return completed after the end of the relevant tax year. A credit will be given for the tax paid during the year. In most cases the 60-day return will have been filed on an estimated basis as income affecting the CGT rate will not be known until after the end of the tax year. If you need assistance with the return or any advice on CGT generally please get in touch https://lnkd.in/eW8chm3

Capital Gains Tax - You Only Have 60 Days Post Completion You must report and pay any tax due on UK residential property using a Capital Gains Tax on UK property account. You must do this within: 60 days of the completion date of selling the property. If you do not report and pay before the deadline you’ll be due a late filing penalty and may be charged interest if you do not do this by the 60-day deadline. This can be very expensive. f you miss the deadline by: -up to 6 months, you will get a penalty of £100 -more than 6 months, a further penalty of £300 or 5% of any tax due, whichever is greater -more than 12 months, a further penalty of £300 or 5% of any tax due, whichever is greater A 60-day CGT return is not required if the disposal has not resulted in a capital gains tax liability, for example if: -The residential property disposal has resulted in a capital loss -The gain (together with other residential property gains that have already happened in the same tax year) is within the annual capital gains tax exemption -Reliefs are applicable to the property disposal which reduces the taxable gain to nil -Capital losses are available to be used against the gain to reduce it to nil, either from previous tax years or from disposals in the current tax year, before the completion date Even if a 60-day CGT return has been filed and capital gains tax has been paid, the disposal will still usually need to be reported on the annual self-assessment tax return completed after the end of the relevant tax year. A credit will be given for the tax paid during the year. In most cases the 60-day return will have been filed on an estimated basis as income affecting the CGT rate will not be known until after the end of the tax year. If you need assistance with the return or any advice on CGT generally please get in touch https://lnkd.in/eW8chm3

Capital Gains Tax - You Only Have 60 Days Post Completion You must report and pay any tax due on UK residential property using a Capital Gains Tax on UK property account. You must do this within: 60 days of the completion date of selling the property. If you do not report and pay before the deadline you’ll be due a late filing penalty and may be charged interest if you do not do this by the 60-day deadline. This can be very expensive. f you miss the deadline by: -up to 6 months, you will get a penalty of £100 -more than 6 months, a further penalty of £300 or 5% of any tax due, whichever is greater -more than 12 months, a further penalty of £300 or 5% of any tax due, whichever is greater A 60-day CGT return is not required if the disposal has not resulted in a capital gains tax liability, for example if: -The residential property disposal has resulted in a capital loss -The gain (together with other residential property gains that have already happened in the same tax year) is within the annual capital gains tax exemption -Reliefs are applicable to the property disposal which reduces the taxable gain to nil -Capital losses are available to be used against the gain to reduce it to nil, either from previous tax years or from disposals in the current tax year, before the completion date Even if a 60-day CGT return has been filed and capital gains tax has been paid, the disposal will still usually need to be reported on the annual self-assessment tax return completed after the end of the relevant tax year. A credit will be given for the tax paid during the year. In most cases the 60-day return will have been filed on an estimated basis as income affecting the CGT rate will not be known until after the end of the tax year. If you need assistance with the return or any advice on CGT generally please get in touch https://lnkd.in/eW8chm3

Capital Gains Tax - You Only Have 60 Days Post Completion You must report and pay any tax due on UK residential property using a Capital Gains Tax on UK property account. You must do this within: 60 days of the completion date of selling the property. If you do not report and pay before the deadline you’ll be due a late filing penalty and may be charged interest if you do not do this by the 60-day deadline. This can be very expensive. f you miss the deadline by: -up to 6 months, you will get a penalty of £100 -more than 6 months, a further penalty of £300 or 5% of any tax due, whichever is greater -more than 12 months, a further penalty of £300 or 5% of any tax due, whichever is greater A 60-day CGT return is not required if the disposal has not resulted in a capital gains tax liability, for example if: -The residential property disposal has resulted in a capital loss -The gain (together with other residential property gains that have already happened in the same tax year) is within the annual capital gains tax exemption -Reliefs are applicable to the property disposal which reduces the taxable gain to nil -Capital losses are available to be used against the gain to reduce it to nil, either from previous tax years or from disposals in the current tax year, before the completion date Even if a 60-day CGT return has been filed and capital gains tax has been paid, the disposal will still usually need to be reported on the annual self-assessment tax return completed after the end of the relevant tax year. A credit will be given for the tax paid during the year. In most cases the 60-day return will have been filed on an estimated basis as income affecting the CGT rate will not be known until after the end of the tax year. If you need assistance with the return or any advice on CGT generally please get in touch https://lnkd.in/eW8chm3

Capital Gains Tax - You Only Have 60 Days Post Completion You must report and pay any tax due on UK residential property using a Capital Gains Tax on UK property account. You must do this within: 60 days of the completion date of selling the property. If you do not report and pay before the deadline you’ll be due a late filing penalty and may be charged interest if you do not do this by the 60-day deadline. This can be very expensive. f you miss the deadline by: -up to 6 months, you will get a penalty of £100 -more than 6 months, a further penalty of £300 or 5% of any tax due, whichever is greater -more than 12 months, a further penalty of £300 or 5% of any tax due, whichever is greater A 60-day CGT return is not required if the disposal has not resulted in a capital gains tax liability, for example if: -The residential property disposal has resulted in a capital loss -The gain (together with other residential property gains that have already happened in the same tax year) is within the annual capital gains tax exemption -Reliefs are applicable to the property disposal which reduces the taxable gain to nil -Capital losses are available to be used against the gain to reduce it to nil, either from previous tax years or from disposals in the current tax year, before the completion date Even if a 60-day CGT return has been filed and capital gains tax has been paid, the disposal will still usually need to be reported on the annual self-assessment tax return completed after the end of the relevant tax year. A credit will be given for the tax paid during the year. In most cases the 60-day return will have been filed on an estimated basis as income affecting the CGT rate will not be known until after the end of the tax year. If you need assistance with the return or any advice on CGT generally please get in touch https://lnkd.in/eW8chm3

PROPOSED AMENDMENTS IN INCOME TAX ORDINANCE 2001 Income Tax on Immovable Properties #3 Progressive tax rates are proposed for property transactions, categorized into three groups: filers, late- filers, and non-filers. a)For filers purchasing property, the tax rates would be 3% for properties valued up to 50 million, 3.5% for properties valued between 50 million and 100 million, and 4% for properties exceeding 100 million in value. Late-filers would face slightly elevated rates of 6%, 7%, and 8%, respectively, for the same property value brackets. Non-filers, on the other hand, would encounter significantly higher rates, set at 12% for properties valued up to 50 million, 16% for properties valued between 50 million and 100 million, and 20% for properties exceeding 100 million in value. b) The proposed progressive advance tax rates at source for filers on the sale of immovable property are structured as follows: 3% for properties valued up to 50 million, 4% for properties valued between 50 million and 100 million, and 5% for properties valued above 100 million. For non-filers, a flat rate of 10% applies regardless of the property's value. Late filers face slightly higher rates, with taxes set at 6%, 7%, and 8%, respectively, depending on the property's value c) A flat tax rate of 15% on gains from the disposal of immovable property acquired on or after July 1st, 2024, is proposed for filers, irrespective of the holding period. For non-filers, progressive tax rates based on the prescribed slab rates in Division I of Part I of the First Schedule will be applied, with a minimum tax rate of 15%.

Planning your estate? Don’t overlook income taxes The current estate tax exemption amount ($13.61 million in 2024) has led many people to feel they no longer need to be concerned about federal estate tax. Before 2011, a much smaller exemption resulted in many people with more modest estates attempting to avoid it. But since many estates won’t currently be subject to estate tax, it’s a good time to devote more planning to income tax saving for your heirs. Important: Keep in mind that the federal estate tax exclusion amount is scheduled to sunset at the end of 2025. Beginning on January 1, 2026, the amount is due to be reduced to $5 million, adjusted for inflation. Of course, Congress could act to extend the higher amount or institute a new amount. Here are some strategies to consider in light of the current large exemption amount.

➡ How Property Tax is Calculated in the USA Property tax is a major revenue source for local governments in the U.S., funding services like schools and emergency services. Understanding property tax calculation helps homeowners anticipate expenses and potentially reduce their tax burden. Here’s a concise guide to the process: ➡ Key Components ▪ Assessed Value of Property ▪ Assessment Ratio ▪ Millage Rate (Tax Rate) ➡ Step-by-Step Calculation ▪ Determine Market Value: Local tax assessors estimate the property's selling price under current market conditions using sales comparisons, income potential, or replacement cost. ▪ Calculate Assessed Value: The assessed value is a percentage of the market value, determined by the local assessment ratio. For instance, if a property’s market value is $300,000 and the assessment ratio is 80%, the assessed value is:                    300,000×0.80=240,000 ▪ Apply Exemptions: Common exemptions, like homestead or senior citizen exemptions, reduce the assessed value. With a $50,000 exemption:                   240,000−50,000=190,000 ▪ Determine Millage Rate: The millage rate, set by local governments, is the tax per $1,000 of assessed value. A rate of 20 mills means $20 per $1,000. ▪ Calculate Property Tax: Multiply the adjusted assessed value by the millage rate, then divide by 1,000:                (190,000×201,000)=3,800 ➡ Additional Considerations ▪ Reassessment: Properties are periodically reassessed to reflect market value changes. ▪ Appeals Process: Homeowners can appeal assessments by providing evidence of comparable sales. ▪ Tax Caps and Limits: Some states cap annual property tax increases to protect homeowners. Understanding this process helps homeowners manage their tax bills and utilize available exemptions or appeals effectively. #CPA #USA #PropertyTax 

For 2024, Massachusetts residents need to be aware of several key differences between federal and state taxation: Federal Tax: Income Tax Brackets: Federal tax rates range from 10% to 37%, depending on income levels. For example, single filers pay 10% on income up to $11,600, and the highest rate (37%) applies to incomes over $609,350. Standard Deduction: In 2024, the federal standard deduction is $14,600 for single filers and $29,200 for married couples filing jointly. Capital Gains: Long-term capital gains are taxed at 0%, 15%, or 20% based on income, while short-term gains are taxed as ordinary income. Massachusetts State Tax: Income Tax: Massachusetts has a flat tax rate of 5% on most types of income. However, the state introduced a 4% surcharge (known as the millionaire’s tax) on income over $1 million in 2023. Capital Gains: Short-term capital gains are taxed at 8.5% (reduced from 12% in 2023), while long-term capital gains are taxed at 5%. Estate Tax: The estate tax exemption increased from $1 million to $2 million, meaning estates valued below $2 million are no longer subject to the tax. These updates reflect significant differences between federal and Massachusetts tax laws, particularly for high earners and those dealing with capital gains or estate planning. Be aware of these differences to avoid surprises at tax time! 💸 🌐 www.dimovtax.com 📞(833) 829-1120 toll free