5b - Gains & Losses Ordinary Gains & Losses

5b - Gains & Losses Ordinary Gains & Losses...

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Unformatted text preview: Individual Income Tax Online Lecture Series Ordinary Gains & Losses Presented by Akore Berliner, CPA GAIN / LOSS FORMULA $ Amount Realized $ Less: Adjusted Basis = Gain or Loss TYPES OF GAINS & LOSSES • Capital Gains / Losses From Sale of Capital Assets Taxed at capital gain rates Ordinary Gains / Losses From Business Operations From Sale of Ordinary Assets (Inventory, Receivables) Taxed at Ordinary income rates • Passive Gains / Losses From Passive Investments Taxed at Ordinary income rates 1231 Gains / Losses From Sale of Business Assets Gains are treated as Capital Losses are treated as Ordinary Recapture Gain Gain on property previously depreciated Taxed at 25% rate ORDINARY GAINS / LOSSES… ORDINARY GAINS AND LOSSES aka Business Operating Gains / Losses • Gains are Taxed at Ordinary Rates • Losses are limited to Amounts At Risk • Generates “ Active ” Loss • Can offset ordinary income and portfolio income ORDINARY...
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This note was uploaded on 02/01/2012 for the course ACC 2546 taught by Professor Dean during the Summer '10 term at San Diego State.

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5b - Gains & Losses Ordinary Gains & Losses...

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