Vincent Salazar Econ 212 Ganderton Assignment 8 November 7, 2007 The IRS treats capital gains and losses on stock trading the same way that treats everything else with open arms willing to take a piece. To report these gains/ losses form 1040 schedule D is used. According to Wikipedia: Generally, appreciated capital assets that are sold by an individual after being held more than one year (long-term capital gain) will be taxed at a maximum rate of 15%. For the sale of collectibles and small business stock, the rate of taxation for individuals is a maximum of 28%. Appreciated capital assets that are sold by individuals after being held less than one year (short-term capital gain) will be taxed as ordinary income, which rises as high as 39.6% in the U.S. progressive tax system. Capital gains by entities taxed as corporations do not receive preferential treatment, and are taxed at a maximum rate of 35 percent. However it is not all bad news you can also offset some losses by claiming them and reducing
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