Capital Gain Tag

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

Posted at 00:00h in 1031 Exchange, Basis, Capital Gain, Capital Loss, Depreciation, Passive Activity, Rental Real Estate, Tax Guidance & Preparation

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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 fix up and subsequently rent...

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30 Nov Trader or Investor? Van Der Lee v. Commissioner TC Memo 2011-234

Posted at 00:00h 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

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Trader or an Investor in Securities? Van Der Lee v. Commissioner TC Memo 2011-234 helps clarify matters. 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...

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

Posted at 00:00h in Capital Gain, Capital Loss

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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 manually subtotal the transactions between...

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12 Nov Determining Tax Basis and Holding Period for Non Passive Activities

Posted at 00:00h in 1031 Exchange, 1231 Exchange, Asset Classification, Basis, Capital Gain, Capital Loss, Cost Basis, Tax Guidance & Preparation

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Determining Tax Basis and Holding Period for Non Passive Activities is one of those 'Secrets of the Golden Flower' that seems to be both completely esoteric and yet oh so real at the same time. Let's take a closer look under the hood, shall we...

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06 Jul Reporting Capital Gains and Losses to IRS

Posted at 00:00h in Capital Gain, Capital Loss

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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 then be carried over to...

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18 May Deducting IRA Losses – IRS Publication 590

Posted at 00:00h in Capital Gain, Capital Loss

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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 they traditional IRAs Roth IRAs. For...

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28 Feb Capital Gains and Losses – IRS form 1040 Schedule D

Posted at 00:00h in Capital Gain, Capital Loss

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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 paid for the asset and...

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19 Feb Capital Gains/Losses – Facts

Posted at 00:00h in Capital Gain, Capital Loss

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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 a capital asset, the difference between the...

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03 Dec Exclusion of gain on your home

Posted at 00:00h in Capital Gain

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If only you could sell, you would be able to exclude from your income up to $250,000 if you are single or $500,000 if you are married of the capital gains on the sale of your home. You must use the home as your principal...

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