Tips for reporting capital gains and losses on your taxes
Taxes: Capital Gains & Losses
The IRS considers your investments earnings to be unearned income. And they want to know how much you make each year on earnings from your savings accounts, stocks and bonds, certificates of deposit or mutual funds. Just how you report your investment income, however, depends largely on how much you made.Reporting Your Capital Gains (or Losses)
You survived a turbulent stock market, making a little profit on a couple of stocks and dumping some dogs just in time. Well, the ride isn't over yet. Buckle up and get ready to report your transactions to the Internal Revenue Service. If you sold a stock or other property, regardless of whether you made or lost money on it, you have to file Schedule D. This two-page form, with all its sections, columns and special computations, looks daunting and it certainly can be.
No Capital Gains Due for Some Investors
You heard right. There's no capital gains tax on the sale of assets held for more than a year. But before you rush to your broker to sell all your stocks and mutual funds, check out the new law's finer points and how they might or might not apply to you.A Look at the Many Capital Gains Rates
Money gurus are always preaching long-term investing. Not only will that give you a better shot at earning more, it'll also get you a lower tax rate when you sell. Currently, capital gains are at historic lows. Some taxpayers in the two lowest tax brackets could end up without any capital gains tax bill. That's right, zero capital gains for some filers.Capital Losses Can Help Cut Your Tax Bill
Plummeting stock prices can cast a dark cloud over anyone's finances. However, at tax time, these capital losses can produce a ray of write-off sunshine. When you sell any pharmaceutical flops or banking blunders, you can use them to offset gains from more successful ventures -- or even a portion of your everyday income.
Capital Gains and Your Home Sale
The rules keep changing, but the home sale tax break is still one of the best around. Homeowners already know the many tax breaks that Uncle Sam offers, most notably mortgage interest and property tax deductions. Well, he also has good tax news for home sellers: Most of them won't owe the Internal Revenue Service a single dime.Declaring an Investment Loss on Land
We purchased land as an investment and the investment did not do so well. After paying interest, taxes, etc., you will be selling the land at a loss -- considerably less than the purchase price. Can you declare this investment loss on your next tax return?