Capital Gains Tax

When you review the prospectus for a mutual fund you are considering investing in, one of the numbers you should look at is the turnover ratio. The turnover, sometimes called the total asset turnover,…

The Internal Revenue Service taxes many forms of income aside from pay earned at a job, including gains that investors make on their investments. When you buy an asset -- such as a share of stock or a…

In the area of estate planning, setting up a revocable living trust can be an effective way to help your family avoid probate when you pass away. When you put assets that gain value into a revocable…

When people lament about how complicated the tax code is, they’re probably thinking of the rules relating to capital gains and stock options. Not all stock options are treated as capital gains,…

A capital gain is a profit you make on a capital asset. Capital assets are investments such as stocks, bonds or real estate. The Internal Revenue Service (IRS) categorizes capital gains as either…

When corporations sell certain types of assets for amounts higher than they were purchased, the transactions are considered capital gains. Depending on how long corporations owned the assets…

The sale of your home and the resulting deed transfer can have tax consequences. If your home is worth more than you paid for it, the sale might result in a capital gain -- a profit generated by the…

While the words "capital gains" can make some taxpayers hesitate, the rules concerning those gains are relatively straightforward. For those in many tax brackets, capital gains can actually…

A company goes through many considerations in choosing its capital structure, and one of those considerations is the tax impact. The two options for capital are debt and equity. One of them receives a…

Your capital gains are subject to the income tax, whereas the gifts of cash and property you make to your heirs are subject to the gift tax. As a result, you cannot offset capital gains by gifting to…

When you sell a capital asset for profit, such as a rental property or classic car, the tax implications are always less expensive when you report it as a long-term capital gain rather than…

You generate a capital gain or loss every time you sell a capital asset. Capital assets include all personal-use and investment properties you own, but specifically exclude rental homes and assets you…

The United States tax code defines different baskets of income and sets rules for how gains and losses in different baskets of income impact each other. Gains and losses of capital assets can be…

As a capital gain is a form of income, you must generally pay tax on your gains. However, your tax rate on those gains can vary depending on how long you have held the capital asset. If you sell an…

Realized gains are profits obtained from selling a financial asset. These assets can include anything from a stock or bond to a piece of real estate. With few exceptions, such as certain tax-exempt…

If a married couple owns a home together, the home must be dealt with if the couple divorces. In some cases, one spouse buys out the other by paying a substantial amount to the other to remove his…

When a person enters into a currency contract, the gain or loss that will be realized is not immediately known, as most contracts do not result in the parties exchanging the agreed-upon amounts of…

When you buy a stock or mutual fund, you hope to earn a profit on the eventual sale. However, when you make money on an investment, you must carefully compute the capital gain and pay taxes on this…

Even though you can't find an official capital-gains tax rate in Illinois, you do have to pay it. Capital gains is the gain on your investments when you sell them. Gain is any amount of money in…

Using options successfully can help protect your investment portfolio from losses and reward you with significant gains. The two simplest form of options are call and put options. If you make an…

The Internal Revenue Service and state revenue authorities assess taxes on individual incomes in order to raise money for government services. At the federal level, the IRS allows taxpayers to use…

Your business' capital equipment can include computers, manufacturing equipment and vehicles. Capital equipment refers to fixed assets you use to manufacture a product, provide a service or use to…

A capital loss occurs when you sell a piece of property that you own for less than what you originally paid for it. This is common in the area of real estate and investments. When you realize a…

An exchange-traded fund is a way for investors to get access to a particular investment style or sector in one investment. Rather than having to buy all of the individual stocks in the Standard &…

People have rental properties for many reasons. Some have bought property for investment reasons. Some have rental properties because they didn't have a choice. They wanted to sell their property, but…

For tax purposes, you generally don't have to prepare a report on your unrealized gains for the IRS precisely because they are unrealized. Until you realize a capital gain, you typically can avoid…

Lenders forgive mortgage debt when you modify your mortgage to reduce the amount legally required for repayment; when you short sale your home -- the sale price is less than the mortgage debt owed; or…

Capital gains tax is a requirement for investors receiving profits from the sale of public stock or other investment property. The federal government controls capital gains tax so it applies to all…

According to the Internal Revenue Service, almost everything you own counts as a capital asset. It does not matter whether you hold assets such as a house and its furnishings as a primary personal…

The value of your business is likely one of the most important assets that you own. When you decide to sell your business for a profit, you will incur capital gains taxes on the entire gain. To reduce…

Whenever you sell something for more money than you paid for it, you face the potential of having to pay capital gains tax. It works both ways, however. If you sell something for less than you paid,…

If you buy or sell stocks or bonds, then you have a portfolio. And if you intend to sell or trade any of your investment properties, then you should be aware of the Internal Revenue Service (IRS) tax…

Although the Internal Revenue Code generally makes marital property divisions tax-free, this does not mean that a separating couple can ignore the tax consequences of their actions. Parties should…

California tax law is generally the same as federal law, including the requirements for capital gains. When filling out California income tax forms, you start with the adjusted gross income shown on…

Most of the time when a person sells an asset for a gain, the gain is a capital gain. Capital gains are non-ordinary gains a person has during the year. There are a couple of ways to reduce a capital…

Private equity funds, which are designed to buy and sell interests in privately held businesses, are organized as partnerships. As such, they don't pay income taxes. Income passes through partnerships…

A stock option is when a company gives an employee the right to buy a certain amount of company stock at a specific (usually bargain) price within a certain time period. The Internal Revenue Service…

Although the Internal Revenue Service regulates incentive stock options, incentive stock options are less regulated and therefore less taxed than their counterparts, non-qualified stock options. In…

The estate tax is in place to allow for a deceased person's assets to be taxed in some situations. According to the IRS, the "laws on Estate and Gift Taxes are considered to be some of the most…

Taxpayers in the U.S. are required to report their realized capital gains or losses. Investors are likewise also required to make a report of their capital gains and losses from the sales of their…

Investing can increase the value of savings accounts. Exchange Traded Funds (ETFs) are investment funds that are traded throughout the day in an appropriate business exchange. According to MSN Money,…

Schedule D is the federal tax form that calculates a taxpayer’s capital gains or losses. Capital gains and losses are determined from the sale of property and must be reported on federal income…

A capital gains tax is imposed by the Internal Revenue Service on the sale of capital assets for a gain. Capital assets are almost anything used for personal or investment purposes. Taxpayers will use…

A capital gain occurs when a person sells a capital asset for more than his basis in the asset. A capital asset is an asset a person uses for personal use or for investment use, such as a home,…

There are often tax consequences when buying and selling stocks. Stocks are a capital asset, so they will have a capital gain or loss when sold. Capital gains and losses are reportable on Form 1040…

A Schedule D form is used for the reporting of short- and long-term capital gains and losses. It is usually filled out using tax preparation software by professional preparers, but with a little…

Real estate and real property such as lots, businesses and rental homes are an excellent and solid form of investment. While they are often expensive, they provide value in that they are always in…

Capital gains and losses are the amounts of money that you have made or lost on your investments. Capital gains are taxed by the government, and you can use a capital loss of up to $3,000 as a…

Any asset can be considered ordinary income property or capital gain property, depending upon the circumstances. It is the federal tax code and the characterization of the property by its owner, which…

The tax effect of correctly arranging the disposition and purchase of a business will have an impact on the finance side of the deal that will affect both parties involved. Regardless of the state of…

Timber can be held for "personal use," as an "investment" or as a "business." Holding timber for personal use disallows expense deductions and makes it the least desirable timber holding for tax…

Congress passed the Jobs and Growth Tax Relief Reconciliation Act of 2003 to improve economic growth. President George W. Bush planned to encourage savings and investment with tax reductions.…

If you had capital gains while a resident of the United States, you are almost certainly subject to capital gains tax. Capital gains tax rates are significantly lower than income tax rates (the…

If you had capital gains during a tax year in which you were deemed a resident of Canada, you are probably subject to Canadian capital gains tax. Nevertheless, deductions are available under Canadian…

A capital gains tax is a tax on profit. Find out what capital gains taxes are from an estate planning and probate lawyer in this free video on estate law.

Bypass trusts can help heirs set a new basis on inherited investments to avoid capital gains taxes. Learn about capital gains in a bypass trust from an estate planning and probate lawyer in this free…

The island of Puerto Rico occupies an anomalous status. Puerto Ricans have enjoyed U.S. citizenship since 1917. But as a self-governing, unincorporated territory, the island is partially inside and…

If you have an investment property or thinking of buying one, following are the steps you want to consider before selling

If you have an investment property or thinking of buying one, following are the steps you want to consider for saving on capital gain taxes

A taxpayer realizes a capital gain when he sells a capital asset, such as stocks, bonds, real estate or other property, at a profit. The sale is usually reported on Schedule D of the tax return, but…