The Capital Gains Blog

Posts Tagged ‘short’

Question: Does short term gains on stocks sold count as earned or unearned income?

I know that interests and dividends are unearned income.

And I know that wages, salaries and tips are earned income.

But what about short term capital gains?

Answer: While they are taxed as ordinary income, they are not considered “earned income” so you can not use them for calculating the earned income credit or an IRA contribution.

Aussie Short-Term Notes to Slide as RBA Just Starting (Update1)

Australian shorter-term bonds will fall at a faster pace than longer-dated government debt as the central bank increases interest rates faster than the market’s “benign” expectations, ING Investment Management said.

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Question: I am confused about capital gains…?

I am selling my apartment building I have owned for nearly 4 years. Are my options to buy a new property or can I use that money to improve my home. Or does that not offset the gain.
Also,
just checking… tax on capital gains is based on your tax bracket or do they have a set taxable percentage.
Thanks so much!

Answer: The only problem with doing a like kind exchange is that the buyer of your property has to be the one giving you ownership of the like kind property in exchange. You can’t sell your building for cash, and then turn around and use the cash to purchase another building. That is not a like kind exchange. Taxpayer A owns building A. Taxpayer B owns building B. In the like-kind exchange, Taxpayer A gives ownership of building A to Taxpayer B, and Taxpayer B gives ownership of building B to Taxpayer A. That transaction would qualify as a like kind exchange. There may also be other ramifications, such as if you sell your property in a like kind exchange, but you receive cash (or other assets) in addition to the new property (your building is worth more than the building you receive in return), then you have taxable gain to the extent of the cash (or other assets) received.

In a straight sale, since you have owned the building for 4 years, the taxable gain would qualify as Long Term Capital Gains, which would be taxed at your marginal rate, up to a maximum rate. Also, if you claimed depreciation on the building over the years you have owned it, then you would need to recapture the depreciation and the amount of depreciation taken in previous years would be reported as ordinary income (taxed at your marginal rate). Your taxable capital gains would be reduced by the depreciation recapture (thereby changing the nature of taxable long term capital gains to ordinary income).

Stocks end flat following mixed economic reports

Investors treaded water for a second day Wednesday as a batch of mixed economic reports and signs of division among Federal Reserve policymakers offered little new insight into the economy. Stocks ended little changed but modest gains pushed the Standard &… Wall Street – Stock – Investing – Business – Stock market index

Cap and Trade Bill Explained by Obama – Creates clean energy and new green jobs

Clough Global Opportunities Fund Increases Quarterly Cash Distribution by 8% to $0.27 Per Share

DENVER—-Today, the Clough Global Opportunities Fund declared that it has increased its quarterly distribution by $0.02 per common share to $0.27 per common share starting in January 2010.

Taxes on Short Sale, Loan Modification & Mortgage Foreclosure 8 Nov08 Qualified CPA & Attorney

Question: can i take short term capital gain against long term Capital Loss?

I have short term gain of $2000 and long term carried over loss of $10,000. Instead of paying Capital Gain Tax on $2000. Can I use my long term loss to equate the short term gain. Do I need to do any thing special while completing the taxes? Please advice

Answer: You need to complete Schedule D along with your tax return. List out your short term capital gain – description, date bought, date sold, sales price, cost basis and gain. Include your long term loss carryforward on Schedule D. Assuming no other cap gains or losses, you can then take up to $3000 of the carryfoward loss against other income on Form 1040. That would leave you with $5000 in cap loss carryforward for 2006.

GLOBAL MARKETS: European Stocks Set To Open With Mild Losses

LONDON (Dow Jones)–European stocks are expected to open with modest losses Tuesday, as the temptation to consolidate gains may prove too tempting after the very positive start to the year’s trading globally.

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Question: Can my last year’s capital losses from stocks offset gains made this year?

I lost $20,000 in stocks last year. I wrote off $3,000 for my taxes I just completed last week, so I have $17,000 left to write off. But if I gain $17,000 in stock gains this year, can I use all of the last year’s losses to prevent paying taxes when next year’s taxes are due?

Answer: Yes, you’re exactly right. The gains are “realized” if/when you sell the stocks at a $17,000 profit in 2009, but those gains are offset by your $17,000 of carryover losses from 2008, so there is no Capital Gains Tax due.

Looking for Tax Bombs and Bouquets in Your Mutual Fund

Know your fund’s tax position before you buy.