Capital Gains and Losses

Introduction 801
What are Capital Assets? 802
Reason for Special Treatment of Capital Gains and Losses 803
Treatment of Gains and Losses — In General 804
Long-Term and Short-Term Capital Gains and Losses 805
How Capital Gains are Taxed 806
Capital Losses and Capital Loss Carryover 807
Capital Gains Exclusion for Small Business Stock 807A
Gains and Losses on Business Property (Sec. 1231 Assets) 808
Computing Gains and Losses on Sec. 1231 Property 809
Special Rule for Casualties and Thefts 810
Gains and Losses on Farm Property 811
Related Party Transactions 812
Full Definition of “Capital Assets” 813
Holding Period 814
Wash sales 815
Early Attempts at Income Taxation 101
The Present Income Tax Law 102
Introduction – General Principles – Definitions 103
Classification of Taxpayers 104
Purpose of the Income Tax Return – Withholding and Estimated Tax 105
Accounting Period -The Taxable Year 106
Accounting Methods 107
The Cash Basis 108
The Accrual Basis 109
Change in Accounting Method 110
When to File the Income Tax Return 111
Penalties 112
Installment Payment of Tax 112A
Where and How To File Manual and Electronic Filing 113
Who Must File a Return 114
Joint Return of Husband & Wife 115
Separate Return of Husband & Wife 116
Who is considered as “Married”? 117
Special Provision for Married Persons Living Apart 118
Minors 119
The Tax Return Forms and Schedules 120
Payment of the Tax 121
Section II
Introduction 122
Gross Income 123
Deductions from Gross Income 124
Adjusted Gross Income 125
Deductions from Adjusted Gross Income 126
Taxable Income 127
Tax Credits 128
The Filing Requirements for Special Taxpayers 129
Introduction 801
What are Capital Assets? 802
Reason for Special Treatment of Capital Gains and Losses 803
Treatment of Gains and Losses — In General 804
Long-Term and Short-Term Capital Gains and Losses 805
How Capital Gains are Taxed 806
Capital Losses and Capital Loss Carryover 807
Capital Gains Exclusion for Small Business Stock 807A
Gains and Losses on Business Property (Sec. 1231 Assets) 808
Computing Gains and Losses on Sec. 1231 Property 809
Special Rule for Casualties and Thefts 810
Gains and Losses on Farm Property 811
Related Party Transactions 812
Full Definition of “Capital Assets” 813
Holding Period 814
Wash sales 815
Early Attempts at Income Taxation 101
The Present Income Tax Law 102
Introduction – General Principles – Definitions 103
Classification of Taxpayers 104
Purpose of the Income Tax Return – Withholding and Estimated Tax 105
Accounting Period -The Taxable Year 106
Accounting Methods 107
The Cash Basis 108
The Accrual Basis 109
Change in Accounting Method 110
When to File the Income Tax Return 111
Penalties 112
Installment Payment of Tax 112A
Where and How To File Manual and Electronic Filing 113
Who Must File a Return 114
Joint Return of Husband & Wife 115
Separate Return of Husband & Wife 116
Who is considered as “Married”? 117
Special Provision for Married Persons Living Apart 118
Minors 119
The Tax Return Forms and Schedules 120
Payment of the Tax 121
Section II
Introduction 122
Gross Income 123
Deductions from Gross Income 124
Adjusted Gross Income 125
Deductions from Adjusted Gross Income 126
Taxable Income 127
Tax Credits 128
The Filing Requirements for Special Taxpayers 129