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This tag is to be used for any question related to gain due to appreciation of capital. Typcially Capital gains are treated differently based on the geography and hence a country tag should ideally be used with this.

2
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1answer
70 views

DRIP Vs. Cash Dividend in a taxable account - Which one is beneficial from the tax perspective?

I believe dividends are considered as an income and if you reinvest using DRIP it won't be income but capital gain later when you sell the stock? What are some advantages and disadvantages of doing ...
1
vote
1answer
106 views

How can I legally sell this property abroad?

I have a property in Bangladesh worth around £500k. I built this property legally many years ago however I moved to the UK around 18 years ago. When I moved, I had changed my name legally meaning ...
-1
votes
2answers
78 views

When do dividends occur but capital gains not?

Consider a one year period. In what case would a dividend be distributed by a company, but its share price not rise (other than a sudden fluctuation towards the nearing of the calculation period)? ...
-3
votes
1answer
72 views

create trading company to reduce capital gains tax [closed]

Can I create a company in a different state and do my trades under that company in order to avoid local state capital gains tax? Edit: I don't care what country.
1
vote
1answer
39 views

Tax Free Exclusion (Capital Gain)

I have question regarding to capital gain tax to a sale of a townhouse in WA State. I just want to see if any of you can provide some advise. Thanks! home purchase in 2008 for 385k and was primary ...
2
votes
0answers
70 views

Capital gains and income

When capital gains are not considered as an income (as per New Zealand Income Tax Law to be precise) then why capital gains/losses end up in an income statement to calculate net income? Does that look ...
1
vote
1answer
43 views

Rental property capital gains

I have a rental property that was my residence for 1 year and 10 months before it was converted to a rental. I am approaching 5 years since I bought the house. Am I doomed to pay capital gains if I ...
4
votes
1answer
66 views

What is the cost basis when selling shares received as part of an acquisition?

If I vested 100 options in StartupCo at a strike of $1 and I exercise then I will have paid $100 for those shares of StartupCo. If BigCorp acquires StartupCo and I receive $5 and .25 shares in ...
1
vote
3answers
85 views

Preventing tax underpayment penalty

I had some short term capital gains in 2017 which resulted in underpayment penalties both in my Federal and State taxes. I have about $5K in crypto-related short term capital gains for 2018 to report ...
0
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0answers
33 views

K1 — MTM elections and form 4797

I received Schedule K-1 (Form 1065) from a fund I invested in. It's really complicated and here is a quick snippet of it. I apologize ahead for truncating some numbers just to protect my privacy and ...
2
votes
1answer
39 views

What is the correct cost basis to use for a qualifying disposition?

I sold some ISO stock this year that I've held for the required holding period so they can be treated as long-term capital gains and looking on my Form 8949, I see that my CPA has used the FMV as the ...
4
votes
2answers
328 views

Including all the ultra-wealthy, what's the average income in the US? [closed]

The ultra-wealthy typically receive fairly little of their income as wages. Larry Page, Sergei Brin, Steve Jobs, Larry Ellison, and Mark Zuckerberg all receive or received no more than $1 per year, ...
2
votes
0answers
35 views

What Details Do I Need to Keep for Tax Returns for Arbitrage Trading (UK)?

I've just started doing some arbitrage trading using a couple of online cryptocurrency exchanges, but I'm not sure what details I need to keep for the tax man. Do I need to keep a record of all my ...
0
votes
1answer
206 views

Can I declare a capital loss on a vehicle sale? [duplicate]

If I sell a car or boat at a profit, I assume I have to pay a capital gains tax. Does it work in reverse as well? Can I declare a capital loss if lose money on the sale of a car or boat?
1
vote
1answer
94 views

Capital gains tax on my home sale where my dad was sole owner

3 years ago I paid to buy a house for $47,000 but was fresh out of college and therefore could not qualify for a mortgage, so my dad signed on the house. After fixing up the house, I closed a sale for ...
3
votes
1answer
55 views

Expat with capital gains in US - do I declare those to my country of residence (UK)?

I'm a US citizen, lived my entire life in the United Kingdom. If I were to earn capital gains from US assets bought and sold through a US bank account, do I have to declare those gains in the UK?
5
votes
1answer
125 views

Can salary sacrifice pension contributions move you into a lower tax bracket for Capital Gains Tax?

If a person is paid over £45,000 per year then they are a Higher Rate taxpayer and pay Capital Gains Tax at 20% If that person pays into their salary sacrifice pension and reduces their taxable ...
1
vote
0answers
1k views

Capital gains under the new 2018 GOP tax plan [closed]

What are the new capital gains tax rules under the new/revised GOP tax plan as of December 16, 2017?
9
votes
2answers
688 views

What are the “capital gains” my ETF is distributing to me alongside its dividends?

Today I noticed several ETFs I own, including SLYG, opened at a significantly lower value than they closed at yesterday (SLYG was $7.975 lower to be exact). Apparently yesterday a dividend was ...
1
vote
0answers
71 views

HYG vs JNK Capital Gains

How has HYG gone years without paying a capital gains dividend, whereas JNK has paid several? I know avoiding capital gains dividends is good because it reduces the need to pay capital gains taxes, ...
1
vote
1answer
152 views

Stock return based on percentage

If you were to buy $1000 dollars worth of shares, and the worth went up 60% and you sold, would you earn $600 or $1600? When you sell, do you keep your original capital, ($1000)?
0
votes
0answers
37 views

Bond ETF Capital Gains

Bond ETFs pay out capital gains once a year. Capital gains happen when the ETF manager sells bonds at a higher price than the price he/she bought them from. What happens to capital gains made at the ...
0
votes
1answer
38 views

Investment of Roth IRA Gains and 5-Year Minimum

Upon turning 59.5, one can withdraw gains from a Roth IRA without penalties and taxes if the account has been held for at least 5 years. Before the 5 years, can the gains be invested in different ...
-1
votes
2answers
118 views

Can another tax loss be used to offset capital gains taxes? How does it work?

Firstly, I tried to find the answer to this by reading other questions, but I am still not sure and hence this question. I read that in the United States, I can deduct up to $3,000 in tax losses. So ...
2
votes
1answer
84 views

Does an inter-spouse transfer of shares reset the “book value”? (in the UK)

If one half of a married couple transfers some shares to the other half, does that somehow "reset" (for capital gains purposes) the "book cost" of those shares, or not? This might be best illustrated ...
1
vote
0answers
2k views

Is there something equivalent of a 1031 Exchange for the UK

I recently learned that in the US you can defer capital gains on a property sale, and use the capital to buy another without paying taxes using a 1031 exchange. Is there something similar to that in ...
5
votes
1answer
854 views

Do I pay tax on a gain made from a currency exchange following a house sale in USA

I bought a house in the US in about 2010 and used it as a holiday home for my family (it was never rented out). In around 2013 I sold the house, which after paying the estate agents fees and leaving ...
16
votes
3answers
1k views

Determining current value for real estate for inheritance purposes

It's my understanding that when someone dies the person who inherits their property has the value of that property reset for capital gains purposes. That is, if the property was purchased for $10,000 ...
0
votes
1answer
69 views

What qualifies for capital losses?

According to this article and this article, pretty much everything I own can be considered a capital asset. According to the IRS here, when property is sold, only investment property can be counted ...
1
vote
1answer
165 views

Capital gains loss, can IRS waive the loss?

I have a capital gains loss of $250K and an IRS debt of $200K, this happened through series of mistakes. I'm currently in non-collectible status. I understand that the IRS has 10 years to collect on ...
2
votes
2answers
2k views

United States capital gains tax for nonresident Citizens?

I'm a United States citizen, however I will be living outside US for the next few years. I still have a US brokerage account. Will I still be charged capital gains tax for trading US stocks with my ...
1
vote
1answer
241 views

If I invest in a company that goes bankrupt, is that a gain or a loss?

This is a real situation, but I will use fake numbers. Let's say I invest $10,000 in an investment trust and my shares eventually appreciate to the point where they are worth $60,000. This is not an ...
3
votes
2answers
136 views

700k capital gain on primary residence sale. How will I be taxed?

I am married and should qualify for the joint 500k exemption for primary residences. Assuming a 100k/year income, my question is if the IRS will consider our income to be 300k or 800k for the year? ...
0
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0answers
59 views

How to report a stock sale which was bought at different times?

In 2016, I bought some stocks at different times and for different prices. And sold everything in one day. How do you report something like this? For example, Bought 10 ABC stocks on August 5 at $5 =...
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votes
1answer
79 views

How are capital gains reported when one asset is traded for another?

Two assets with values A:$10, B:$100. Bank account starts with $10. Buy 1 asset A for $10. Trade 1 asset A for 1 asset B (great trade!) Sell 1 asset B for $100. Obviously the capital gain is $90, ...
3
votes
2answers
114 views

Capital Gains Puzzle

Assume there are two like-kind capital assets: A and B. Neither A nor B have ever been traded for dollars or any other currency prior to Day 1, and hence have no established market value. ...
4
votes
1answer
258 views

Correct way to amend tax return as a result of not correctly reporting gains on sale of private stock based on Installment method?

Background. I owned series A and series B preferred stock in a private company that merged with a public company in 2015 giving rise to large gains.The merger closing date occurred in September 2015 ...
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1answer
139 views

Meaning of reinvestment

Is it correct that stocks and mutual funds can distribute dividends and capital gains automatically without account holders' intervention, and then reinvest the distributed to buy new shares? From ...
3
votes
1answer
86 views

Capital Gains on a joint property

I own a property with my sister, she lives in the property and I don't. We are looking to sell the property and split the value increase. Would I need to pay capital gains on my half and my sister ...
2
votes
2answers
254 views

How are various types of income taxed differently in the USA?

From Dilip's reply when you make a withdrawal from your Traditional IRA, no matter which of your various IRA accounts you take the money from, part of the money is deemed to be taken from the ...
3
votes
1answer
288 views

What is the relation and difference between capital gain distribution and capital gain?

In US federal tax, what is the relation and difference between capital gain distribution and capital gain? For example, the two terms are distinct in the instructions of 1040 Exception 1. You ...
3
votes
1answer
459 views

Capital Gains tax on the sale of my vacant land in Michigan

Good afternoon, I have a question regarding the Capital Gains tax I will have to pay on the sale on my vacant hunting land I sold in Michigan in 2016. I owned the property for six years and from ...
0
votes
1answer
438 views

Why would a mutual fund plummet on the same day it pays its annual distribution & capital gains? [duplicate]

Two mutual funds I follow both plummeted on the same day that they paid out their annual dividends and capital gain distributions. (The rest of the year was relatively stable.) The timing seems too ...
1
vote
1answer
68 views

IT Returns for Capital Gains / India

DO I need to file IT returns if capital gains are under the annual limit of Rs. 2.5 lakhs and are the only the source of income? Please advise.
1
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1answer
90 views

What taxes do I pay when investing in mutual funds apart from retirement?

I have some extra income that I would like to put into mutual funds, instead of leaving it in a 1% interest savings account (best I could find right now). I'm in the United States. Some background - ...
1
vote
1answer
672 views

Income tax for Partial redemption of mutual funds - India

I am regularly investing in mutual funds for the past 2 years via SIP. As I am urgently in need of money I am planning to partially redeem by selling some units. My question is, how income tax is ...
4
votes
2answers
514 views

capital gains tax for non-resident trading German stocks

I come from Hong Kong, a non-German citizen living outside the German and trading German stocks through a U.S. internet broker. Should I have to pay capital gains tax to German government on the money ...
0
votes
2answers
73 views

How do I determine if sale proceeds from an asset are taxable?

So let's say you're a small business and you buy a computer and expense that, and then later you want to sell it to buy a newer one. Is there an easy way to determine how much of this sale is taxable? ...
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votes
1answer
52 views

Do I purchase stocks or not? [closed]

Stopped by to purchase some company stocks. I was told it didn't make sense to purchase for 2 reasons: I must hold onto the stock for 1 year past the company sale (and they don't believe the sale ...
4
votes
1answer
77 views

Does it make any sense for UK private investors to hold gilts directly and outside of a tax wrapper?

According to my understanding of gilts (which is in accordance with the answers here), private investors in UK gilts paying a premium on the redemption price (for example 2% T20s currently report a ...