So, for example, a taxpayer might have a passive income 20% capital gain
, in which case the income category is passive and the rate group is 20%.
Most tax professionals are familiar with the complex nature of the federal taxation of capital gains
from the sale of common stock, but there are also tax savings opportunities for shareholders of qualified small business stock: the Internal Revenue Code (IRC) section 1045 capital gain
rollover provision and the IRC section 1202 provision for the exclusion of capital gain
Typically, highly appreciated assets are good candidates for a CRT because the trustee can sell the assets and, as a tax-exempt entity, the trust will not be liable for capital gain
taxes, so there are more funds available for investment.
Taxpayers must own an identifiable asset that was disposed of in a sale or exchange if they want to report a capital gain
However, if all members of a partnership agree to trade a property, and receive a property of equal value or greater value, the partnership itself tan defer the recognition of the capital gain
When the Gordons filled out both 2002 returns, their income under the AMT was $27,000 higher than their regular income tax after they added back state and local taxes and a $10,000 capital gain
May the taxpayer claim a long-term capital gain
on the sale of the property even though it always intended to sell the second site?
NEW YORK -- At a meeting of the Board of Directors of Tri-Continental Corporation (NYSE: TY) on Tuesday, February 20, 2007, the Board declared a long-term capital gain
distribution of $0.
If the parents plan to postpone a sale until 2008 when the child's capital gain
rate could be zero, they have to make sure that he or she reaches 18 by then; otherwise, the gain will still be taxed at the parents' (presumably higher) rate (see CCH, Tax Increase Prevention and Reconciliation Act of 2005: Law and Explanation, [paragraph] 210).
Adjusted net capital gain
is the net capital gain
for the tax year (the excess of net long-term capital gains
over net short-term capital losses) less:
Three IRS letter rulings offer joint inventors reassurance they will not lose IRC section 1235's benefits (allowing long-term capital gain
treatment on a subsequent transfer, rather than ordinary income treatment) if they transfer their patent rights to a limited liability company (LLC).
It's for those homeowners who want to cash out of their property and enjoy a major capital gain