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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1k views

Capital gains for agricultural land converted to non-agricultural land for the purpose of sale?

I held some agricultural land in Gujarat state for 14 years, and sold it on 20th August. As per the law in Gujarat, a non-farmer cannot hold agricultural land, so the land status was changed to non-...
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1answer
1k views

What are the tax implications of selling an investment property in india?

I am living in UK for last 10 years. I have an NRE and NRO account in Bank of Baroda. I want to sell my flat in India and will deposit the cheque of 50 lakh in my NRO account. I have bought this ...
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1answer
432 views

What are the Long Term Capital Gains for this real estate sale in India?

I purchased a site for Rs85,000/- in 30/03/2001 and planning to sell it this year(2014-15) for Rs35,000,000/-. What will be the long term capital gains for this? If I invest in bonds for 3 years, will ...
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1answer
163 views

Where to park money from the sale of a rental property?

If I sell my investment property to raise cash for the purchase of a new home, I am required to pay capital gains tax (i.e. income tax on 50% of the gain amount.) Is there a way to park this money ...
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1answer
2k views

Is the amount taxable if my grandfather sells agricultural land

My grandfather who is around 80 years old selling agricultural land that he has acquired from his forefathers in Aligarh (Uttar Pradesh). He would the selling the land for 13 lakhs. Is this taxable. ...
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1answer
170 views

Using stock options to lower income tax in the USA?

Lets say I have a small company and I pay myself a salary of 200k / year. I'm in the 33% tax bracket. I've thought about a strategy to lower my taxes to about 20%, but not sure if it's viable. Would ...
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1answer
591 views

When is there a difference between short- and long-term capital gains?

I have always heard that short-term capital gains are subject to more tax than long-term capital gains. While preparing my 2014 federal tax return, though, it seemed as if all of my gains were being ...
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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 ...
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2answers
1k views

USA H1B Employee - Capital gains in India from selling selling stocks

I moved to the US in May 2012. I had made some investments in Indian stock markets. Since I did not make any significant profits in 2012 and 2013, I never paid taxes on that. In 2014, I have made some ...
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1answer
420 views

Capital gains on sale of property taken using housing loan

We bought a house for Rs 40lakhs/- by taking housing loan for Rs 35lakhs/-, however the property was registered only for Rs 15lakhs/-(this is the amount in the sale deed).Now we are planning to sell ...
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2answers
574 views

Does FIFO cost basis applies across multiple accounts?

Do regulations require people to manually recalculate cost-basis across all the accounts they own, if stocks were transferred between them? Example: Broker A cost basis setting is set to FIFO. ...
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2answers
382 views

First convert owner occupied to rental, then sell — capital gain?

Bought a house at 250k, converted after 8 years to rental (was worth some 160k then), rented out for two years, sold for 250k. While renting, depreciation was based on market value, 200k. What is ...
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1answer
279 views

How can I reduce my tax liability on proceeds from the sale of a company?

My (Canadian) company is about to be sold and as one of the first employees I'm expecting a significant payout from options (e.g. $2M !). That sounds like an incredible amount of money, but this is ...
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2answers
3k views

Do I still need to pay capital gains taxes when I profit from a stock in a foreign currency?

Let's say I convert CAD 100 to USD 90. With the USD 90, I buy a stock that goes to USD 100, and then I sell it. If I don't convert the resulting USD 100 back to (say) the CAD 105 it might be worth at ...
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1answer
41 views

(US) What is the deduction for gifts of appreciated stock with restricted registration rights?

I have appreciated stock that I am allowed to give away to charitable transferees, but those transferees will have restricted registration rights for 12 months. They cannot sell the stock for 12 ...
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1answer
223 views

For my self assessment do I need to fill out both the Capital Gains Summary and Tax Return?

I received a documents through the post from the HMRC, a Capital Gains Summary and a Tax Return. The thing is I just want to tell them my gains/losses in shares using the Capital Gains Summary ...
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1answer
255 views

A deferred capital gains tax similar to the real estate 1031 Exchange but for securities reinvestment?

I am looking for a way to transfer a stock that has done well into a safer investment (like an index fund). I assume the only way I can do this is sell the stock, pay the tax owing, and buy new stock. ...
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2answers
3k views

Tax consequences of partially selling a stock

I bought a company for $71 5 months ago. It is now over $100 but I am afraid it might fall. I plan to sell only enough to get back the money I put into the stock and own the gained amount until it is ...
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2answers
81k 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 ...
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1answer
499 views

What does it mean to be “offset against taxable gains”?

In a shareholder's derivative litigation I have the following statement of the financial situation which this case arises from: "Plaintiffs contend that if the company were to sell the purchased ...
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2answers
233 views

Taking partial capital loss purely for tax purposes

I have a position in asset that I plan to hold for a long time. Currently its market price is on a downtrend and could possibly turn into a capital loss. I am not concerned about the near term price ...
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1answer
132 views

How is Massachusetts state tax on unrealized capital gains calculated?

My state (Massachusetts) imposes a 5.2% tax on unrealized capital gains. [1] I'm trying to understand how this tax is calculated. Here's an example: John Doe makes $50,000 in a given year. Meanwhile, ...
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1answer
231 views

Proving sale of stock is not short-term

Here is the scenario I am faced. I've transferred DSPP stock from my former employer's stock transfer company (Computershare) to Etrade a few weeks ago. These stocks are from 2010 and 2011. I ...
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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 ...
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1answer
79 views

Trading security and tax

According to GAAP: If I buy 1000 shares of security A for 50$. Then later, I sell 1000 shares of security A for 150$. At the same moment I buy 1000 shares of security B for 150$. For tax purpose ...
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1answer
65 views

Returning Financial Capital to Investors

If someone invest certain amount on my company and after a year I am able to return the exact capital with the profit, what will I do to that investor? Will that person still invest in my company? ...
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1answer
1k views

Interpreting mutual fund performance: “Earnings” vs. gains/losses?

I have a 401K at Vanguard through my company, and I was browsing the 'performance' of my fund. I found where it breaks down my transactions, gains/loss, earnings, and overall change. I'm guessing ...
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1answer
138 views

How do I determine capital gains tax on a vacation property for 2014?

In 2003, I bought a property in New Jersey for $465,000 to use as a vacation home. I'm planning to sell it, and I think that I'll get around $685,000. I rented it out for several weeks the first year ...
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2answers
10k 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 ...
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1answer
1k views

Whats the difference between day trading and flipping and their tax implications?

I recently started trading this year, and for the most part have only invested in companies that I plan on keeping for a while. I understand the differences between short-term and long-term positions ...
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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 ...
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3answers
848 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?
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374 views

Long-term capital gain taxes on ETFs?

Sorry if this is a very novice question. I couldn't find it by searching here or Bogleheads (I'm not really a 100% Boglehead either). Let's say I hold $30,000 in an ETF called BMT (Big Mike's Tech). ...
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2answers
238 views

What does “no adjustments” mean?

On Form 8949, Part I, it says You may aggregate all short-term transactions...for which there are no adjustments directly in Schedule D without reporting them in Form 8949. What does it mean for a ...
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1answer
904 views

How do I properly file state income taxes for a 1099-B that has an out-of-state address?

I have a brokerage account with my old address on it from a different state (New York) than my current residence. Therefore the 1099-B and 1099-DIV were issued with the old address on it and I assume ...
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1answer
335 views

Offsetting capital losses against gains for stocks

Let us say I hold 4 stocks in a non tax sheltered account Stock A has capital gain of 10$. Stock B has capital loss of 20$. Stock C has gain of 10$ but it is intra day, hence counted as income, not ...
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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 ...
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1answer
256 views

Are capital gains tax-free in a Vanguard tax-free fund?

I own shares of the Vanguard New York Long-Term Tax-Exempt Fund (Admiral Shares)(VNYUX). I'm wondering exactly what is tax-free about it. The link says that the "interest income" is tax-free (...
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1answer
895 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 ...
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2answers
381 views

Paying taxes super early: is it possible to send the IRS money for my 2014 taxes even though the 2013 tax year isn't over?

I recently sold an investment that earned a sizable (about $20K) short-term capital gain. I know that I'm going to owe income tax on this amount for the 2014 tax year, and although I don't know the ...
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2answers
157 views

Are there any other investing methods I should look into?

I'm looking into long-term investments. So far, I've looked at stocks, mutual funds, IRAs, and 401Ks. I'm 22 and recently begun my first full time job. I know the basics of these investments, ...
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1answer
2k views

Tax applicable on selling of agricultural land in India

My father now aged 65 years, had purchased the agricultural land in Gurgaon area (Farukh Nagar) in 1987. He sold this land in 2011 at Government circle rate. The money was received by demand draft. He ...
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1answer
4k views

How do capital gains count towards gross income on your tax return?

In the US, when tallying gross income, do capital gains (short term or long term) count toward your gross income, before capital losses? OR do capital losses subtract from your capital gains before it ...
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1answer
976 views

Is it possible to withdraw your cost basis from an investment to minimize capital gains taxes?

Say you invest $10,000. In a couple of months, that $10,000 investment is now worth $50,000. You decide you want to take out your initial investment of $10,000 back into cash and let the remaining $40,...
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1answer
250 views

Question about large capital gain

For recent years my income has been about $20k. I'm hopeful that this year I can sell vacant that I bought in 2001. I paid $600k and hope to sell it for about $3,000,000. I live outside the US but the ...
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1answer
125 views

Is money from selling an investment property taxed at the marginal rate?

If I sell my condo (an investment property, not my primary residence) then I imagine I need to pay tax (provided I make a profit). If I don't make profit, can I use the loss against my salary income ...
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2answers
343 views

Capital Gains Tax - Does this apply only to the actual “gains” or to the entire amount of my sale?

If I buy 10 shares of stock at $10 each I have spent $100 in stocks. If I later sell these within the same year, do I pay taxes only on the difference of the buy price and the sell price [with a ...
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1answer
5k views

How much capital gains tax is due on the sale of a home if most income comes from Social Security?

My 94 year old widowed mother wants to sell her house. Her only income aside from Social Security is a $150/month retirement check from a job she had years ago. How much, if any, capital gains tax ...
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1answer
189 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 ...
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1answer
362 views

Does a corporation pay same capital gains tax as an individual?

If I open up a corporation in Canada and the sole purpose of the corporation is to trade stocks, does the corporation pay the same kind of taxes on investment gains as if I were trading those stocks ...