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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4
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2answers
343 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, ...
3
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2answers
407 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 ...
1
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1answer
2k 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?
2
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0answers
52 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 ...
1
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1answer
131 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 ...
5
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1answer
414 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 ...
2
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1answer
63 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?
1
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1answer
156 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)?
5
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1answer
170 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 ...
8
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2answers
976 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 ...
4
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1answer
5k views

ESPP in the UK - worth it? Disqualifying / qualifying sales?

I've recently joined a company that offers a ESPP scheme and I just wanted to get a few bits of information as well as confirm that my understanding is correct. You choose a percentage that will be ...
1
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0answers
103 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, ...
0
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1answer
42 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 ...
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2answers
151 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 ...
3
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1answer
90 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
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1answer
176 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 ...
6
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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 ...
1
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1answer
70 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
182 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 ...
15
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3answers
2k 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 ...
32
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2answers
47k 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 ...
0
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1answer
112 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 ...
2
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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
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1answer
339 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 ...
0
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1answer
173 views

Canadian Citizen and Non Resident for tax purposes

I am a Canadian citizen was a non resident for tax purposes. If I sold stock shares in January 2016 and became officially a Canadian resident again in April 2016 (3 months after selling the stock), ...
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 ...
2
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2answers
142 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? ...
5
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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 ...
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1answer
92 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, ...
7
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2answers
12k 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 ...
3
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2answers
123 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. ...
2
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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, ...
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1answer
243 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 ...
2
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2answers
769 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
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1answer
3k 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 ...
2
votes
1answer
726 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 ...
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 ...
0
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1answer
2k 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
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1answer
98 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 - ...
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 ...
1
vote
1answer
985 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 ...
0
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2answers
75 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? ...
1
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4answers
657 views

Small capital investment in Germany [closed]

Since from next year I'm planning to take a peek at the brick market in order to buy a house (I'm going to ask a loan - therefore I need a capital to begin with) here in Germany where I live, I'd like ...
3
votes
1answer
319 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 ...
4
votes
1answer
118 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 ...
7
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2answers
1k views

How are taxes tracked on investments which have already had tax paid on them?

I made some investments years ago and took out an amount in 2016 to invest with on my own. Let's say the amount was $1,000 US dollars. I paid capital gains on this amount which was 15% so of my $1,...
3
votes
3answers
7k views

Stocks taxed just for selling, or just when withdrawing?

I'm humbled by the fact I couldn't find a direct answer to this anywhere so if one exists already just let me know and I'll del this one. My question is, say you have an Ameritrade (or similiar) ...
3
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4answers
120 views

When does it make sense for the money paid for equity to go to the corporation?

Consider this scenario: While incorporating BigCo, Jack specifies that the number of founding shares is one million. Jack releases a product and sells it under BigCo. The product doesn't bring enough ...
3
votes
1answer
121 views

House sales and capital gains - primary vs secondary

State: Texas I have two houses. I don't treat them as primary or secondary, they are both occupied. I am keeping them while I can, waiting for the value of one of them to go up sufficiently so I can ...
2
votes
1answer
115 views

Is there income tax on my one-time sale of my California primary residence?

Bought house in 1998 for $850k, primary residence the whole time, thinking about selling it now for $2.2M Is there Fed or Calif income tax on the profit?