Assign8 - Vincent Salazar Econ 212 Ganderton Assignment 8...

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
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
Background image of page 1
This is the end of the preview. Sign up to access the rest of the document.

This note was uploaded on 09/03/2008 for the course ECON 212 taught by Professor Ganderton during the Spring '08 term at New Mexico.

Ask a homework question - tutors are online