Capital Gains and Losses

Navigate the complexities of capital gains and losses with our detailed guide. This resource explains the differences between short-term and long-term capital gains, the tax implications of various investment types, and the rules surrounding mutual funds and securities. Ideal for investors and taxpayers seeking to understand the tax treatment of their investments.

Highlights:

• Capital Assets vs. Noncapital Assets: Differentiate between assets like stocks and real estate versus inventory and trade goods.

• Holding Periods: Distinguish between short-term and long-term gains based on the duration of asset ownership.

• Mutual Funds: Learn about cost basis calculations, including specific share identification and FIFO methods.

• Capital Gain Tax Rates: Overview of the tax rates applicable to different levels of income and types of gains.

• Capital Loss Limitations: Understand the limitations on deducting capital losses and the concept of wash sales.