Class 3c Gains & Losses Capital

Class 3c Gains & Losses Capital -...

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Taxation of the Business Entity  Online Lecture Series Capital Gains and Losses Presented by Akore Berliner, CPA
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GAIN / LOSS FORMULA $ Amount Realized $ Less: Adjusted Basis = Gain or Loss
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WHAT IS A  CAPITAL  ASSET? 
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CAPITAL ASSETS Generally: Assets held for investment  (e.g., stocks, bonds, land) Personal use assets  (e.g., residence, car) Miscellaneous assets selected by Congress
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CAPITAL ASSETS DEFINED Capital assets are defined as  everything  except : Inventory Notes and accounts receivables acquired from  the sale of inventory or performance  of services Realty and depreciable property  used in a trade  or business Certain copyrights; literary, musical, or artistic  compositions; or letters, memoranda, or similar  property when created by taxpayer  (or for which  taxpayer takes a carryover basis from the  creator)
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CAPITAL ASSETS DEFINED -  CONTINUED Capital assets are defined as  everything  except : Taxpayers may elect to treat a sale or exchange  of musical compositions or copyrights in musical  works as the disposition of a capital asset Certain publications of U.S. government Supplies of a type regularly used or consumed in  the ordinary course of a business
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CAPITAL ASSETS - HOLDING PERIOD Holding Period = The time the asset is owed by the  taxpayer Long-term  assets are held for > 12 months Short-term  assets are held for <  12 months
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TAX TREATMENT FOR  NET  SHORT-TERM  CAPITAL GAINS Taxed as  ordinary income 
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