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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.
135 Questions
Can i offset Capital Gain Dividend with capital loss?
If you are talking about a Long Term Capital Gain dividend from a mutual fund, the answer is yes.
Can a C-corporation use its ordinary loss to offset capital gain?
A c corps capital gain is taxed as ordinary income so why couldn't you use an NOL to offset the gain?
If an individual has a capital loss in 2008 can he carry it back to a 2005 capital gain tax paid?
No. But you can use $3000 of the capital loss to offset current year ordinary income and then carry the rest forward.
Be sure to fill out the capital loss carryover worksheet in the Schedule D instructions before you enter a carryover from the previous year. The carryover rules are some of the most confusing for taxpayers and taxpayers cheat themselves out of a lot of carryover. Don't assume you know the right amount to carry over. Use the worksheet.
To calculate your capital gain, subtract your initial purchase price from the selling price. You bought 100 shares at $40 each, totaling $4,000. Selling at $150 per share gives you $15,000. Your capital gain would be $15,000 - $4,000 = $11,000.
What cost basis should I use to figure out capital gain for stock which was a gift?
If the fair market value (FMV) of the stock was greater than the donor's adjusted basis at the time of the gift, your basis is the donor's adjusted basis plus any gift taxes paid at the time of the gift. http://www.irs.gov/faqs/faq-kw77.html
How do you calculate capital gain after a merger or acquisition that involves both cash and stock?
1099B form from your broker should be showing the sales proceeds correctly. First check the surviving company's web site for instructions on how to calculate the new cost basis of the surviving entity. The rule is that your economic gain (market value of new stock plus cash received less cost basis in your original shares) is only taxable to the extent of cash received (referred to as cash to boot.) You can apply the formula:
GAIN = Lesser of (CASH RECEIVED) or (Market value of NEW company's stock received plus CASH received less OLD company's cost basis)
After that you have to determine, whether it is long term gain, taxed only at 15%, or ordinary income. You do that by looking at the original purchase date of the old company. If it was bought more than 12 months before the merger or acquisition, you have a capital gain. Otherwise, it is a short-term gain, taxable as ordinary income unless you have capital losses to offset it.
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What do you mean by capital gain?
In UK tax law a capital gain is when you sell shares, land, property etc, at a higher amount for which you acquired it.
Capital Gains Tax is charged at different (generally lower) rates than Income Tax and is subject to generous allowances, so unless you regularly sell property etc you are unlikely to have to pay CGT but you still have to declare capital gains, even if there is no liability calulated.
