Questions tagged [capital-gains-tax]

Questions related to the tax liability from the appreciation of assets, e.g. stocks, mutual funds, real estate.

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How does IRS know that I calculated tax using worksheet "Qualified Dividends and Capital Gain Tax Worksheet"

I am filing 2021 Federal Tax and got long-term capital gains (will also file Schedule D). I calculated tax using "Qualified Dividends and Capital Gain Tax Worksheet" How will IRS know that ...
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Transfer holdings to different broker w/o paying capital gains?

Suppose you own a bunch of stocks/ETFs with a broker (e.g, Fidelity) and you want to switch to another broker (e.g., Vanguard). You can certainly sell the stocks/ETFs, move the cash to Vanguard, and ...
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Wash sale rules do not match broker's report

I inadvertently triggered a wash sale in my taxable account (in the US). What my broker reports does not match my understanding of the wash sale rules, so I'm asking here whether it is my broker or I ...
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Is this Class Action lawsuit settlement taxable as a long term capital gain?

Imagine an investor owns the XYZ company which is taken over by another company in a cash transaction. The investor sells his shares in the XYZ company for a profit. He then reports the profit as a ...
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Exercised stock options, the company was bought/merged after several years, my stock was sold - what are my tax implications?

I bought the options I had vested in the Company upon leaving (United States). After several years the Company was bought/merged into another, and my stock was paid out. From my understanding: The ...
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2 votes
1 answer
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When are capital gains realized if I sell a house and do owner financing?

I am selling an investment property without doing a 1031 exchange and would like to minimize, or at least spread out the tax burden of the capital gains. Especially given that I expect to be in a ...
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Complicated CGT conundrum

My husband and I bought a house with two other people 12 years ago. We were going to go into business with them, but shortly after we fell out with one of them making the whole situation very ...
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figuring out the cost basis of a primary home converted to rental and then off rental

I bought an apartment in Washington DC in 1995 to live in. Subsequently I moved out of DC (and a few years ago, out of the country) but kept the apt and rented it out for many years. I paid the ...
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Wash Sale - Selling RSU Shares Before Another RSU Vest

I currently have RSUs that vested three months ago where the the current market price is lower than the value of the stock when I acquired it. I'd like to sell these RSUs (at a loss of about -$5,000) ...
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1 answer
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Does sale need to come before purchase to be considered a like-kind exchange

Does sale need to come before purchase in order to be considered a like-kind exchange and avoid capital gains tax? When selling your home (primary residence) and purchasing a new one does the sale of ...
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To whom do I pay capital gains tax on sale of property while residing abroad?

I am a U.S. citizen, residing in Spain, who sold a property last summer in Washington DC. Where do I pay the capital gains tax? In the U.S. or in Spain? Or both (with a credit for tax paid to the ...
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Weighing consequences of selling assets to get down payment for buying house

My partner and I want to buy our first house. We're thinking about the cash that we'll be required to have on-hand for the down payment and closing costs. We have no debt. We have money saved in ...
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Is a depreciation claim on a rental property basically always worth it in Canada, given stable income?

As I understand it, in Canada (unlike the US) there is some freedom in how much depreciation expense you can claim for a rental property every year, from 0 all the way up to 4% of the yet-...
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If Stocks are given as a gift, is the cost basis preserved?

When selling a gifted stock, is the entire value considered taxable income, or is the original cost basis used to calculate the difference? Thank you
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Personal investment and yearly capital taxation

Regarding someone based in Ireland. If a private person saves regularly and invests in stocks, how can she grow the investment and pay taxes some day in the future when she withdraws from her account? ...
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How do I calculate Private Residence Relief for a house I've sold where there was a loss, not a gain?

This question is likely specific to UK rules. I've sold a flat which I lived in for part of the time I owned it. I'm trying to fill out the Inland Revenue's 'report my Capital Gains Tax' form. I've ...
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Cost Basis of Foreign Property That Becomes Subject to US Taxation [duplicate]

Let's say a non-US person moves to the US and then becomes US person for tax purposes of that year. At the time of arriving to the US, the person has been holding onto some property (i.e. stocks and ...
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2 votes
1 answer
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Can Wash sale be claimed in this situation in adults joint account

I had bought some sharers of an sector ETF in my joint account with my spouse. Now those shares (suppose quantity 250) are far below ( let say $40 per) our purchase price( let say $100). I am thinking ...
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Should I report a cryptocurrency transaction with a $0 capital gain?

I'm reporting my cryptocurrency trades on 2018 Form 8949. For some of them, after rounding to the nearest cent, the gain is $0.00. Should I still include those rows even if there's no capital gain or ...
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Do I have to actively sell a capital asset to be required to file Schedule D?

I'm reading the instructions for 2021 Line 7 for the 1040 and noticed the following Capital Gain or (Loss) If you sold a capital asset, such as a stock or bond, you must complete and attach Form 8949 ...
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Does asset custodian matter when determining which capital gains lot you sold? (USA)

Say you bought N shares of some company at broker X on Jan 1, 2021. You bought N more shares of the same company at broker Y on Feb 1, 2021. Then on March 1, 2021, you sell N shares with broker Y. For ...
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Capital Gain on sale of shares

I have sold shares held by me in Pakistan. My holding was for more than a year. Do I need report this on my US Form 1040 for 2021 tax year? How do I report it ie where and how on Form 1040?
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4 votes
1 answer
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Can I claim a capital loss on property I gifted?

I had some cryptocurrency with an unrealized capital loss that I gave to someone as a gift. My adjusted cost basis just before I made the gift was $4,000. The fair market value (FMV) of the ...
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Where do I roll over capital losses from a previous year on my tax forms?

I use TurboTax and a couple of years ago I lost money in the stock market. I haven't made any money in the stock market since then but plan to start investing again and wanted to make sure that the ...
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2 votes
2 answers
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Capital gains exemption on home sale

I am under the understanding that the capital gains exemption on a primary residence applies to gains only and not the total sale price of the house however I am in the process of signing paperwork ...
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What should one do with excess capital losses?

What should one do with excess capital losses? Suppose I need to sell some stock to fund a down payment on a house, and I have long term gains, short term gains, and long term losses to choose from. ...
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-1 votes
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Where can I see my interest and dividends earned as well as net capital gain/loss for my Fidelity HSA last year?

As I was a tax resident of California in 2021, I must report the interest and dividends earned as well as net capital gain/loss for my HSA account, which is managed by Fidelity: Where can I see my ...
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1 vote
1 answer
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Reporting capital gains as an F-1 student in the US

United States Since I was on an F-1 STEM OPT status in 2021, my brokerage company issued me a 1042-S form. This only shows the dividends and interest, but not the capital gains. How do I calculate my ...
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2 votes
1 answer
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Are long-term capital gains tax rates marginal or effective?

I've found many sites that list the current U.S. long-term capital gains (LTCG) tax rates for tax year 2021. But I can't find any explanation whether these tax rates are marginal or effective. For ...
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Within thirty days I buy 1 share of NVDA at 210 and sell for 215 the same day. What is my cost basis for that share?

I am trying to understand the implications of wash sale as it affects gains and repurchase at higher price. I buy 1 share of NVDA at 200 and the sell at the same exact price. Within thirty days I buy ...
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2 votes
1 answer
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Avoiding Double Taxation on US Capital Gains for US citizen residing in Portugal

I am a US citizen retired and living in Portugal. I make a living investing in US stocks. I report this income to both the US and Portuguese IRS and pay taxes on both ends. Could someone tell me ...
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0 votes
1 answer
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How to account for a investment income on estimated tax?

I had a short-term investment payoff $40k. This figure will appear on the K-1 which I will receive in August. Meanwhile, what's the easiest place to stick this figure somewhere while doing estimated ...
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1 answer
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How exactly does RSU impact my tax return? [duplicate]

I have some RSUs in 2021 and some of them got vested. I see that in my H&R Block software it states that these were reported on my W2 and I think they were. So my question is how is this vesting ...
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2 answers
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Is there a way to sell a stock and as soon as possible buy another stock without paying a capital gains tax? Even if there was would it be outlawed?

Something similar to cryptocurrency trading where you can sell and buy for small fee via stablecoins.
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1 vote
3 answers
117 views

Does Wash Sale Rule Apply If Gain?

Recent market volatility had me trying to explain wash sales to someone and I realized I wasn't completely sure about the following: Day 1) Sell a stock position at a loss Day 2) Stock price ...
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Received stock in trade for LLC units as part of an IPO. How to report paper gain?

USA taxpayer. An LLC in which I had units IPOed. I chose to have some of the units converted into stock instead of receiving cash. (Yeah, didn't expect tech implosion, but that doesn't matter for this....
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1 vote
1 answer
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How many times can one do a Sec. 1031 exchange, with the same capital?

I was given advice that if I wish to purchase another apartment, best to do a Sec. 1031 exchange with the one I own now. I might only want to live there for a few years. Can I do the Sec. 1031 ...
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1 vote
1 answer
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What sequence are stock units held by us sold in?

This is specific to Indian Stock Market but I'd like to know about other markets as well if it works differently there. Here's the scenario:- I bought 10 units for INR 10 each. The stock went up by 10,...
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2 votes
2 answers
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How do wash sales work when the acquisition of substantially similar stock is done *before* the sale?

I understand wash sale rules in the simple case: If I sell stock at a loss and then buy it back in 30 days or less, I can't take a deduction on the loss and must instead add the loss to the cost ...
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1 vote
1 answer
143 views

How do I determine the cost basis on old stock?

We've had some stock in one company since the early 1990s. We had the dividends reinvested in the stock each time they were paid, so the records show we bought fractional shares from time to time over ...
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1 vote
1 answer
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Restrictions on rounding proceeds/basis when computing capital gains tax?

When I upload Form 8949 transactions using TaxAct it rounds the proceeds/basis for each individual transaction to the nearest dollar. In other words if I make one transaction buying a stock for 0.51 ...
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1 answer
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Can either of the following Unforeseeable Events allow me to avoid capital tax on a sale of an apartment abroad?

I used to live in my apartment which is located outside the U.S. I have been renting it out for 5.5 years. I saw on the website of the IRS that if there were Unforeseeable Events then one can avoid ...
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37 votes
2 answers
8k views

How do I realize tax losses on a cryptocurrency I can't sell?

I have a bunch of dead coins that don't have any liquidity on exchanges anymore. Is there a way to sell them or report them to the feds somehow so I can harvest my tax losses? I read about a way that ...
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1 vote
1 answer
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What are the tax consequences of loaning securities to one's broker aside from the dividends being paid as payment-in-lieu taxed as income?

I'm trying to understand the tax consequences of loaning securities to one's broker in the United States: The dividends of the loaned security are being paid as payment-in-lieu, which is taxed as ...
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0 votes
1 answer
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HR Block Software reduces my tax return by $53 after entering crypto gain of $13

Some time this year I purchased 0.1 ETH for $260 and a few days later sold it for $273 which is a gain of $13. However, when I enter these amounts into form 1099 in HR Block software that reduces my ...
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Selling stock to fund downpayment

My parents are buying a condo in a 55+ community in Florida and I'd like to help with the down payment. The community requires 30% down and I'd like to sell stock to help them. From what I know, I ...
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1 vote
0 answers
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Tax treatment of underlying asset in 1256 options contract if exercised

I've talked to a tax professional but got a very uncertain answer and can't find any examples online, only examples are of the option expiring worthless rather than in the money. Example: 1 Bitcoin ...
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2 votes
1 answer
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Would selling an above-ground pool from a house I bought (pool came with house) count as capital gains for taxes?

I bought a house last year, which included an (empty) above-ground pool. I didn't want the pool so I sold it to someone else. Does this sale likely count as capital gains for tax purposes? (And ...
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Understanding the taxes on covered call ETFs (e.g., QYLD, RYLD and XYLD) whose dividend payments count as ROC: short-term or long-term capital gain?

As a US taxpayer, I am trying to understand the taxes on covered call ETFs (e.g., QYLD, RYLD and XYLD). From projecttheta, with QYLD as the example: Almost all of QYLD’s dividend payments have ...
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1 vote
2 answers
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Is there a future tax benefit to selling RSUs in order to exercise-and-hold the stock options?

I have RSUs and in-the-money stock options granted by my company, both vested. I've held the RSUs for over a year, so I understand that when selling, I would pay long-term capital gains tax on the ...
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