Posts Tagged ‘Capital Assets’


How to Calculate Your Cost Basis and Save Money…Guaranteed

money

When you sell a capital asset you need to know when you purchased it and what the cost basis is.  These will be used to determine what your capital gain (or loss) is.  Capital assets are items such as stocks, bonds and mutual funds.

Holding Period

A short-term capital gain is for a capital asset held a year or … Continue reading »


What’s the Difference in Capital Gains Taxes?

Capital Assets

Capital assets are generally those held for investment.  Stocks, bonds and mutual funds are some examples. If there is a gain on the sale of these assets, a capital gains tax is due.


3 Reasons to Recognize Capital Gains in 2012

1) The Long-Term Capital Gains Rate is Going Up

Long-term capital gains are for capital assets held longer than a year. Capital assets include stocks, bonds and mutual funds. Collectibles and certain Real Estate are subject to special rules.  The stated rate on long-term capital gains is currently 15%.  If Congress fails to take any action, this will increase to 20%.  The so-called Bush tax cuts reduced the rate on long-term capital gains to 15%.  These tax … Continue reading »


The Difference Between Short-Term and Long-Term Capital Gains

The sale of a capital asset will result in a capital gain.  Depending on the holding period of this asset, the gain will either be short-term or long-term. Long-term gains have a lower, preferred income tax rate.  The holding period begins on the day the asset is purchased, as measured by the trade date, to the day the asset is sold. Assets that are inherited are deemed to be held long term.


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