Capital Gain

A capital gain is the income from an investment. When a capital asset increases in value, the capital gain is equal to the higher selling price minus the amount you paid for it. Capital assets include stock, bonds, and real estate.

Asked in Taxes and Tax Preparation, Income Taxes, Capital Gain

What is the capital gains tax rate for the selliing of stock shares?

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15% for Long Term, Ordinary Rates for short term www.TaxMeThis.com
Asked in Taxes and Tax Preparation, Capital Gain

Can a single parent and child jointly own a home to avoid capital gain taxes?

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You should consult an attorney. My experience would indicate that until the child reaches the age of majority, the child can do nothing more than complicate your title. Answer Where are you from? Just because i am unsure how titles on a home could ever change having to pay capital gains tax.... In Australia each person has a "main residence" home which no capital gains tax would be paid if it was sold for a profit. If they owned more than one house then the others would be subject to capital gains. Primary residences are basically exempt from tax on gain at sale...agreeably with considerations like replacement within 2 years and age of seller and having taken a 1 time break before. And even without that, why you thing having 2, or 20 names on the title would change the amount of tax due 9it wouldn't, just how many people are responsible for it), I don't follow.
Asked in Taxes and Tax Preparation, Capital Gain

The company that I'm working for is going to be sold and all my options are going to be vested at the time of the sell. What can I do to avoid capital gain tax on the profit?

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Vesting of your options does not produce income. Virtually always, they vest as you hold them anyway, (that is they become non-defaultable - yours). You pay tax on the gain you realize upon their sale. Actually, you don't pay capital gain tax by the way...it's worse...the amount you have as income upon sale (presuming a "cashless transaction" where you authorize the options to be exercised to buy the related stock at the option price and that stock to be sold for the market price, realizing a profit on the difference), is reported as employee compensation, that is ordinary income, on the W-2 your employer provides. Hence, it's taxed at ordinary, not gain rates. But that has to do with options not receiving dividends along the way too. You can't avoid the tax, but there may be someways, if you own other stock of the Co, that you want to maintain, to effectively make the deal get taxed at Cap gain rates, but it is situational and complex.
Asked in Insurance, Life Insurance, Taxes and Tax Preparation, Capital Gain

Should a cash out of a life insurance policy be treated as a capital gain or regular income?

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Typically, proceeds from life insurance policies are not taxable. If it is a pension plan/IRA, or a business investment (a contract with a third party where you placed insurance on the third party for your benefit), proceeds even after death may be fully taxable as ordinary income. However, if a life insurance policy, purchased in the usual matter as a personal expense, is cashed out (surrendered) and there is a lump sum payment of the surrender value, it is just like any other capital transaction. You pay tax on the difference between proceeds and the amount you invested over the years like any other capital asset with a capital gain or loss, presumably long term since there is no cash value for the first few years. You may also have ordinary income from interest or dividends which the insurance company might report on a 1099 int/div You will receive a 1099 R that provides all the information you need - proceeds, taxable part and they go on 16a & 16b of your Form 1040. If the cash received is part of a viatical or any other type of settlement, there may be other considerations that improve the result.
Asked in Real Estate, Income Taxes, Retirement Planning, Capital Gain

What is the lifetime capital gain exemption on home sale?

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The lifetime exemption was eliminated in 1997. There is currently a new exemption that allows you to exempt up to $250,000 in capital gains ($500,000 if married filing jointly) if certain conditions are met and can be used as often as every two years.
Asked in Stock Market, Mutual Funds, Capital Gain

When mutual funds advance you get slapped with capital gain taxes but when they decline you cannot deduct any losses why?

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You can if you sell at a loss. Problem is that if you make $10,000 profit, you pay tax on it all in one year. If you lose $10k, you can only write off about $3,000 per year so it will take you 4 tax years to write off that kind of loss. Been there, did that.
Asked in Business & Finance, Tax Forms, The Difference Between, Capital Gain

What is a capital dividend?

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A capital dividend is a special dividend paid to shareholders of a corporation out of capital gains income produced from the sale of property.
Asked in Business Accounting and Bookkeeping, Capital Gain

What accurately describes a capital gain?

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an increase in the value of an investment :) tinaa
Asked in Taxes and Tax Preparation, Income Taxes, US Air Force, Capital Gain

Do you pay capital gain tax on stocks in loss?

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You would NOT have a capital gain tax to pay when you have a loss on the sale of stock. You WILL HAVE to report the transaction on the schedule D of the 1040 tax form and up to 3000 of loss for the year will be used to offset up to 3000 of ordinary income for the year any amount of the remaining loss will then be carried over to the next years until the loss is completely used up.
Asked in Law & Legal Issues, Taxes and Tax Preparation, Capital Gain

Should I pay capital gain tax in 2007 or 2008 for cash dividend pay date of 2008 and ex dividend date of Dec.2007?

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First...this may be the best question I've seen in a long time! The real answer should be...regardless of when...the finance guys that did this and spanned the year, should be lined up, waterboarded before being forced to walk across a shallow lake filled with hungry piranah! I'm going to continue thinking (and researching it)...as i suspect there are some cases directly on point...although I wouldn't be surprised to find there are conflicting answers there too. The concept of "constructive receipt" is very big in taxation (and presuming your a cash basis taxpayer as most people are), the concept doesn't always mesh perfectly with that. And in this case, I can see there is a strong arguments for there having been constructive receipt at the ex-div date....BUT I think there is a much stronger one that there wasn't constructive receipt until the pay date (regardless of when the pay was actually received). I believe the ex div date just becomes the day the Corp acknowleges/records it's obligation to pay (as it does with virtually all expenses it can anticipate), and the pay date the day it the bill becomes payable. Hence, the Corp., presumably an accrual taxapayer, has the expense (albeit there is normally no tax deduction for dividends), as accrued...but the recepient...a cash basis one, may not have the income until the obligation is due and paid. Finally, I suspect this will all come out and be shown in the correct reporting period on the 1099 DIV the company must report. Follow that for your own return.
Asked in Home Equity and Refinancing, Taxes and Tax Preparation, Income Taxes, Capital Gain

When do you pay capital gain tax on house you sold?

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In Canada you pay the capital gains only on investment properties that are sold and it's paid with your income taxes (so you may have a income tax balance due when you file your taxes, for the year the property was sold).
Asked in Income Taxes, Capital Gain

What is the capital gain tax on a home sale?

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Capital gain tax's applies to the moneys that you make on top (profit) of what you paid for the house ... and that would depend on what state you live in ...
Asked in Taxes and Tax Preparation, Income Taxes, Capital Gain

What is the difference between capital gain and capital loss?

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Capital Gain is when you sell an asset for more than it cost you and make a profit and Capital Loss is when you sell and asset for less than it cost you, therefore making a loss. In other words the Mr Macauber principal!
Asked in Income Taxes, Capital Gain

Can i offset Capital Gain Dividend with capital loss?

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If you are talking about a Long Term Capital Gain dividend from a mutual fund, the answer is yes.
Asked in Taxes and Tax Preparation, Income Taxes, Property Taxes, Capital Gain

When to pay tax for capital gain from stock sells?

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It is reported as income in the year of the sale. Your estimated payments, as well as your return for that year should reflect the tax on this.
Asked in Taxes and Tax Preparation, Income Taxes, Tax Forms, Capital Gain

Can a C-corporation use its ordinary loss to offset capital gain?

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A c corps capital gain is taxed as ordinary income so why couldn't you use an NOL to offset the gain?
Asked in Business & Finance, Capital Gain

What is a realized capital gain?

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A capital gain is an increase in the value of invested money eg the rise in the value of shares, the increase in value of land or property, the increase in value of a work of art, etc In the UK capital gain is taxable by the iniquitous Capital Gains Tax. The gain is only realised when the investment is sold. Tax can then be computed on the gain.
Asked in Debt and Bankruptcy, Capital Gain

Is capital gain or an inheritance considered regular income on bankruptcy form 22a line 10?

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In keeping with most accounting ideals: The reovery of basis on the item you are seeling for a gain would be an asset, listed as such on the balance sheet. The amount above basis, which becomes you gain, is expected income. Inheritance, presuming your just waiting for a distribution and the estate is settled, is also an asset. (If your just really still a beneficiary and the estate isn't settled, I don't think you meet the "all events" test to claim it as anything). I'm not sure what "regular" money coming in is, but it sure sounds like a source of income.
Asked in Accounts Payable, Capital Gain

What the meaning of blanket overhead rate?

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Blanket overhead rate is the computation of a single overhead rate for one whole factory. Overhead rate is the percentage you get when comparing total overhead expenses to total expenses.
Asked in Taxes and Tax Preparation, Income Taxes, Tax Forms, Capital Gain

Can Schedule A Losses be offset against a Capital Gain?

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Schedule A itemized deductions losses of the 1040 tax form would be entered on page 2 line 40a of the 1040 tax form. They losses would not have anything to do with the offsetting of capital gain and loss on the schedule D of the 1040 tax form.
Asked in Stock Market, Capital Gain

How could you earn a capital gain on your stock?

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Wait for the stock price to be more than what you paid for it. For example you buy a stock for $5 and in two weeks it jumps to $10 and then you sell it, that is capital gain