Even a cursory reading of IRC section 121 reveals that when Congress instituted it, the intent was to exclude the vast majority of personal residence gains from
Currently, the 28% rate applies to long-term gains from
collectibles and to a portion of the gain on certain qualified small business stock (Sec.
If you choose to average, you must do so the first time you report gains from
a particular fund, and you must maintain that method for all future gains or losses from that fund." Calculate gains on fund shares using both FIFO and averaging methods to see which you should use when you prepare your tax return.
The single-tenant net-leased property has emerged as the best investment for sheltering gains from
Director, Division of Taxation,(2) held that capital gains from
stock sales may constitutionally be apportioned where the stated purpose for the stock acquisitions and divestitures was to expand existing operations and enter new businesses.
1045, which established a special "rollover" procedure to help steer investments to "qualifying small businesses" Using the provision correctly, an investor (or groups of investors banded together to create a fund) can cut their tax bill by 30% to 60%, or defer taxes on gains from
these sales for many years, creating a diversified portfolio of growth funds.
* For long-term gains and losses, a net loss from the 28% group (including long-term capital loss carryover) would offset any gains from
the 25% group and, then, any from the 20% group.
The TRA '97 modified the income tax treatment of gains from
the sales of principal residences.
Section 865 generally bases the sourcing of gains from
sales of personal property, including stock, on the taxpayer's residence.
To the extent such built-in loss items offset the built-in gains from
the receivables, there would be no amount subject to the built-in gains tax.
Beginning in 1993, however, net capital gains from
the disposition of investment property no longer are included in the definition of investment income when determining the limit on the investment interest expense deduction.
For this purpose, passive income is income from dividends, interest, annuities, certain rents, royalties, and gains from
the sale or exchange of stock or securities.
The Treasury Department and the IRS are considering whether previous guidance (including case law) for valuing inventory purchased for a lump sum should be modified and what, if any, safe-harbor rules for determining built-in gains from
inventory should be implemented.
Capital gains from
the sales of publicly traded securities (stocks or debt instruments traded on an established market) on or after August 10, 1993, may be eligible for the deferral.
Ralph has incurred capital losses from nonbusiness bad debts and would like to use these capital losses to offset capital gains from
the sale of some of his properties.