Capital Gains Tax

Cost basis is how much you paid for shares of a security The average cost basis method is an IRS-approved way to determine the average price that you paid for mutual fund shares only, not...

Calculating the tax basis of real estate is important with your personal residence, but it is absolutely critical when dealing with investment property. Failing to calculate the correct tax basis...

Selling stock at a profit is always fun, at least until tax time, but stock splits can confound the basis computations for the uneducated. Fortunately, figuring out this issue is not as...

Mutual fund distributions can create a tax bill for you even if the total value of your shares has fallen below what you originally paid for them. This tax bill can be avoided by selling mutual...

Many people have automatic investing plans that purchase stocks at set amounts every month at various prices. One question that might come up when preparing a federal tax return is when the time...

Cost basis is the value of an asset, such as stocks or other investments, when you originally purchased them. It is used to calculate the capital gains on your investments for tax purposes. The...

The IRS does not allow deductions for losses on a wash sale. A wash sale occurs when you use the proceeds from a stock sale to purchase "substantially identical" stocks within 30 days of the sale...

When common stocks are sold, the taxes due on them are calculated based on the profit, or capital gain, realized. This can be done by comparing the total cost of the shares with the net proceeds...

What papers do I need to file in order to sell a house that was gifted to me? If you’ve been gifted a house, either during the donor’s lifetime, or as a testamentary bequest (under the Will of...

A company has a certain number of shares outstanding at any given time. These shares are priced individually and represent a fractional ownership of the company. In a stock split, the company...

A capital gain is an increase in value of a capital asset that makes it worth more than its purchase price. A capital asset is an investment or piece of real estate. For property sold, the gain is...