Questions tagged [capital-gain]

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.

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31
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2answers
46k views

How are long-term capital gains taxed if the gain pushes income into a new tax bracket?

First, my understanding is that the long-term capital gains tax rate is 0% for those whose marginal rate on ordinary income is 10% or 15%, and (ignoring the highest 39.6% bracket) the rate is 15% for ...
7
votes
1answer
1k views

“Cap gains exposure” of an ETF — what does it mean?

Morningstar provides an ETF data point called potential cap gains exposure. For example, here is Vanguard's Europe ETF (VGK): This value is negative 78% for VGK. I understand that this is a good ...
6
votes
1answer
3k 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 ...
10
votes
3answers
644 views

Can you step up your cost basis indefinitely via the 0% capital gains rate?

I had asked a previous question about moving money between mutual funds without taxation due to the 0% capital gains rate for those in low tax brackets. However, I realized that this 0% rate actually ...
1
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2answers
240 views

Capital losses from stocks - carryover, and offsetting gains / income for NON-RESIDENT ALIENS

I'm a PhD student filing a tax return for 2018 on 1040NR (non-resident alien) - married filing separately. In 2018 - I had a considerable capital loss (there were no gains). when filling my tax return ...
7
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2answers
1k views

Shifting money between mutual funds

In the last 5-7 years, I've gradually invested money in several mutual funds via my bank (USAA). These funds now make up about a third of my portfolio. Initially I had invested in these funds ...
5
votes
2answers
576 views

How to realize capital gains before going from non-resident alien to resident alien in USA

I am a foreigner and will move to USA next year (2016) and want to optimize my tax situation beforehand. I bought stocks in 2009 which appreciated in value but I would still like to keep them. So my ...
2
votes
2answers
730 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 ...
1
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4answers
2k views

I file 83(b) election, but did't include a copy of it in that year’s tax return

I filed an 83(b) election for stock I purchased in 2011 with the IRS with the 30 days window, but later did not include a copy of it in that year’s tax return. The the purchase price and the fair ...
12
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3answers
26k views

If I sell my house, will I have to pay taxes on the profit?

I am in the United States, in Colorado. I purchased a house in July of 2013. It was in poor condition, so I spent the first two months repairing things before moving in. Now, 11 months after moving ...
10
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3answers
791 views

ETF vs Mutual Fund: How to decide which to use for investing in a popular index?

How do you decide between investing in an ETF, vs. in a mutual fund, for the popular stock indexes? Trading costs, tax efficiency, capital gains?
7
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2answers
11k views

Is a divorce buy-out of a house a taxable event?

To be clear, this is a question about US Federal Taxes, and I live in Virginia, which is an equitable property (not community property) state. Additionally, I understand this is not a legal forum ...
4
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1answer
651 views

Meaning of capital gain distribution

How is capital gain distribution calculated? I wonder what differences and relations are between capital gain distribution and capital gain/loss? Line 13 of IRS Form 1040 asks for capital gain and ...
3
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2answers
361 views

Further Understanding of Wash Sale Rules

First let's make sure I understand a Wash Sale: Let's say I invest in 100 shares of ABC stock for $100 and after a week sell the 100 shares of ABC for $70, I've lost $30 which I can deduct from my ...
1
vote
1answer
188 views

cross-currency accounting

I am an American and pay taxes in US dollars. I have some holdings in another currency, for instance, the Euro. Obviously the funds have never been repatriated but this lack of tax event is messing ...
13
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3answers
6k views

Are there capital gains taxes or dividend taxes if I invest in the U.S. stock market from outside of the country?

Recently, I invested in some stock in the U.S. stock market. I was wondering: Whether there are capital gains taxes if I sell stock? Do they take account into my foreign exchange loss? Are there any ...
5
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2answers
4k views

Should I wait to sell a stock (at a loss) that I have held for less than a year?

I currently hold some shares of a stock that I don't expect to regain much value. I bought this (at a higher price) about 8 months ago. My limited understanding of the way capital gains taxes work ...
10
votes
2answers
78k views

How to account for Capital Gains (Losses) in double-entry accounting?

After taking an introductory financial accounting class, I decided to use GnuCash to keep track of my personal finances. I have 5 major accounts in my general ledger: Equity Currently only used to ...
4
votes
1answer
2k views

Taxes when exercising stock options in a privately held startup

Let's say I currently have the right to exercise some employee stock options (ISO) at a certain strike price. I have add these options for more than a year. I read that the AMT tax applies on the ...
3
votes
1answer
291 views

Do you use the Cost Basis or the Amount Invested to compute a gain/loss for tax purposes?

A friend's Edward Jones financial advisor is using the Amount Invested and not the Cost Basis to compute the tax loss of selling a mutual fund. I don't know anything about this stuff, but I'm pretty ...
9
votes
2answers
717 views

Benefits of Purchasing Company Stock at a Discount

The public company I work for offers a stock purchase plan at a 15% discount. There is an annual limit to how much each employee can purchase at the discounted rate. To keep things simple assume: ...
8
votes
1answer
1k views

What should I use as the cost basis for stock that was purchased before becoming a US resident?

I held some stock in Australia for 14 years and 4 months that has enjoyed some healthy long term capital gains in that time. Recently I became a US Resident for Tax Purposes under the Substantial ...
8
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3answers
2k views

Forex vs day trading for beginner investor

In essence, for a person that has not had any real experience with either (except for playing around in simulators like investopedia): which one would an individual have the most potential to ...
5
votes
4answers
23k views

Is it worth it to buy TurboTax Premier over Deluxe if I sold investments in a taxable account?

I sold investments in a taxable account in 2013, include shares from an employee stock purchase plan (ESPP). I have always used TurboTax and am planning to again, but I'm trying to decide which ...
2
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2answers
2k views

ESPP cost basis and taxes

I participated in a qualified employee stock purchase plan (ESPP) and the offering period just ended. I put in $5000 and got a 15% discount on the price at the end of the offering period (no lookback ...
2
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1answer
1k views

Capital gains on foreign investment?

An American "tax person" living solely in Canada must report any interest income earned in Canada on his/her US tax return. But, does this income include any gains or losses caused purely by currency ...
10
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2answers
3k views

Treatment of web domain ownership & reselling for tax purposes: Capital asset, or not?

I run a web publishing business. I buy a large number of domains — and occasionally sell one, although not frequently. Some domains are developed into websites, which bring in advertising ...
8
votes
2answers
946 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 ...
5
votes
4answers
15k views

Do I have to pay a capital gains tax if I rebuy different stocks?

If I sell stocks and bonds and have a capital gain, and rebuy different stocks within a certain time frame, will I still be paying the capital gains tax from the original sale? ( just want to change ...
5
votes
1answer
185 views

If I get cash compensation for my stocks (following a merger for example) does that qualify for capital gains tax?

This is the scenario. Say I buy some shares of a company X at a certain value. Some time after this, when I am still holding the stock, the company gets acquired by some company Y and as part of ...
4
votes
1answer
90 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 ...
4
votes
2answers
27k views

How long do you have to live somewhere to be a resident for tax purposes?

My company is paying me with large amounts of equity pay. Theoretically*, I could delay realizing some of the gains on this equity and move to a place which, unlike California, does not charge 9.3% on ...
3
votes
2answers
400 views

Bitcoin Cost Basis Purchases

Suppose that a client purchases 10 BTC over a price range of $180 to $290 and transacts twice with his BTC for a total purchase of 2.7BTC. Two questions: Based on this, the IRS taxes bitcoin like ...
2
votes
1answer
531 views

Tax consequences of short term capital losses

How do short term capital losses figure into taxable income? If someone has 50k of taxable income before considering capital gains (and losses) and a total of $2k in short-term capital losses, what ...
2
votes
1answer
886 views

Asset Sale: Net proceeds to cash AND capital gains?

This is very simple but I'm having trouble figuring out how to account for the sale of an asset, in double-entry bookkeeping, in a way that shows the net proceeds going to cash AND recorded as a ...
2
votes
1answer
107 views

Tax on Sale of Property

My uncle has sold his property and he deposited the money he received from selling the property. I like to know, if he keeps that amount in his bank account for an year, will that money be taxed? He ...
2
votes
2answers
9k views

What capital gains taxes do non-resident Canadian citizens owe?

I live in the Caribbean. I remain a Canadian citizen, but a few years ago I declared myself a non-resident for tax purposes. Assuming I have no income in the Caribbean, and I make $100,000 on stocks ...
2
votes
2answers
1k views

Short or Long Term Capital Gains for Multiple Investments

Say I make the following transactions: Jan 5, 2011: I buy 100 shares of Stock X Jan 5, 2012. I buy 100 more shares of Stock X. August 1, 2012: I sell 100 shares of Stock X. If I have this correct, ...
1
vote
1answer
178 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 ...
1
vote
1answer
709 views

Strategy to offset a big one-time windfall or gain/income for tax purposes?

This is a question of curiosity, and not a situation I am in (although one day, I could hope!). I'm self-employed for a few years now, and don't make a lot in net profit, but enough to survive on in ...
1
vote
3answers
109 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 ...