10 Important Facts About Capital Gains and Losses

IRS tax tip 2011-35, February 18,2011 Did you know that almost all of your possession and use of personal information or investment purposes is a capital asset capital assets, including a home, furniture, stocks and bonds, personal account, when an asset is sold, the difference between the two for your assets and sell you a capital gain or capital loss.

Here are 10 facts to the tax bureau advocacy of Gender Information and Networking System and losses, as well as how they impact your federal income tax.

1. Almost all of your possession and use of the personal purposes, are pleased to and investment in the capital assets.
2. When you sale of capital assets, the difference between the two amounts you sell, in accordance with you - is usually what you paid for it - is a capital gain or loss of capital.
3. You must report all capital gains.
4. You can only deduct capital losses of property investment, rather than to the individual holders of the property.
5. Capital Gains and losses are classified as long-term or short-term, depending on your length of time the property, keep your sales. If you press and hold the power button for more than one year, your capital gains or losses is a long-term, if you press and hold a year or less, capital gains or losses in the short term.
6. If you have long-term gains over your long-term losses, and you have a net capital gain, you on the extent to which net long-term capital gain is more than net short-term capital losses, if any.
7, this tax rate for net capital gains are generally lower than the tax rates that apply to other income, 2010, the maximum return on capital the maximum is 15 per cent of the people of low-income people, rate may be 0 per cent of the part or all net capital gains, in particular types of net capital gains tax to 25 per cent or 28 per cent.
8. If your capital losses exceed your capital gains, excess can be deducted from your tax return and to reduce other income, such as wages, annual limit $3000 OF $1500, and if you separate of a marriage.
9. If you have a total net capital losses over the annual limit capital loss deduction, you can make the unused part to the next year, the event as if it occurs, one year to the next.
10. Capital Gains and Losses Report Schedule D, capital gains and losses, and then go to line 13 of 1040 form.
For the details of the report Capital Gains and losses, see Schedule D instructions, publication 550, investment income and expenses, or publication 17, your federal income tax, and all forms and publications are available on this website or call 800-Tax Form (800 3676. link:
• publication 17, your federal income tax (PDF K 2015 )
• publication 550, investment income and expenditure (PDF K 516 )
• Schedule D, capital profits and losses and instructions

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page last reviewed or updated: 12 APR 2013