Capital Gains Ignorance Leads To Catastrophic Losses
The IRS regards almost every asset you use or own for business or personal reasons as a capital asset. Such items include your personal residence in addition to any furniture or stocks and bonds held in your own name. Net profit or loss from the sale of such commodities is either a capital gain or loss.
All capital gains must be accurately and fully reported on federal tax returns.
Deductible capital losses are limited to investment property.
Capital gains and losses may be categorized as either “short-term” or “long-term.”
Applicable net capital gain taxes are typically lower than other taxable … Read the rest