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How to Calculate Basis of a Primary Residence Converted to Rental Property [Reg. §1.168(i)-4(b)] [Reg. §1.165-9(b)(2)]

Many people have built impressive residential real estate portfolios one property at a time, living in the property while fixing it up thus declaring it their primary residence for income tax purposes and then moving onto a new house to

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Posted in 1031 Exchange, Basis, Capital Gain, Capital Loss, Depreciation, Passive Activity, Rental Real Estate, Tax Guidance & Preparation

Are You A Trader or an Investor? Van Der Lee v. Commissioner TC Memo 2011-234

While many individual taxpayers claim to be traders in securities as compared to investors, in Henricus C. van der Lee, et ux. v. Commissioner TC Memo 2011-234 we learn in my humble opinion that the facts and circumstances of each and every specific taxpayer's

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Posted in Basis, Business Expense, Business Income, Capital Gain, Capital Loss, Cost Basis, Deductible Expense, Mark to Market, Net Operating Loss, NOL, Tax Court, Tax Deductible Expenses, Tax Records

How To Report Gains and Losses from Securities Transactions – IRS Form 8949

The requirements for reporting short-term and long-term transactions on separate IRS Form 8949's by type A, B or C are still required. When the totals on brokerage statements include both type A and type B transactions, you will need to

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Posted in Capital Gain, Capital Loss

Determining Tax Basis and Holding Period

According to IRS Publication 544 holding period is generally speaking the length of time a capital asset is owned. It is important because of the tax benefits of long term capital gain or loss treatment according to IRC Sec 1223. If

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Posted in 1031 Exchange, 1231 Exchange, Asset Classification, Basis, Capital Gain, Capital Loss, Cost Basis, Tax Guidance & Preparation

Reporting Capital Gains and Losses to IRS

In tax year 2011 the IRS created Form 8949, Sales and Other Dispositions of Capital Assets, for taxpayers to calculate capital gains and losses. List all capital gain and loss transactions on this form. The subtotals from this form will

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Posted in Capital Gain, Capital Loss

Deducting IRA Losses – IRS Publication 590

According to IRS Publication 590, chapter 1 section "Recognizing Losses on Traditional IRA Investments" you can indeed deduct for tax purposes a loss on IRA plans if you cash out all funs out of all IRAs of the same type be

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Posted in Capital Gain, Capital Loss

Capital Gains and Losses – IRS form 1040 Schedule D

Everything you own and use for personal or investment purposes is a capital asset including a home, household furnishings and stocks and bonds held in a personal account.  When a capital asset is sold, the difference between the amount you

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Posted in Capital Gain, Capital Loss

Capital Gains/Losses – Facts

The IRS wants you to know these ten facts about gains and losses and how they could affect your tax situation. Almost everything you own and use for personal purposes, pleasure or investment is a capital asset. When you sell

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Posted in Capital Gain, Capital Loss
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