Taxes

Capital Gains on a Land Sale Capital gains on a land sale applies when you sell raw land for a profit—the gain is taxed as long-term or short-term based on holding period.

Capital Gains on a Second Home Sale Unlike a primary residence, a second home does not qualify for the $250k/$500k capital gains exclusion, and gains are taxed as long-term or short-term depending on holding period.

Capital Gains on Bond Premium and Discount How bond premiums and market discounts affect capital gains tax treatment when bonds are sold before maturity.

Capital Gains on Business Equipment Sales How Section 1245 depreciation recapture converts prior deductions into ordinary income before any remaining gain becomes capital gain.

Capital Gains on Covered Calls How premium from covered calls is taxed, how exercise or expiration determines capital gain character, and holding-period traps for covered call writers.

Capital Gains on ESPP Shares How ESPP disposition rules and the one-year holding period determine whether gains are taxed as ordinary income or capital gains.

Capital Gains on Foreign Stock Sales How to calculate and report capital gains on foreign stock sales: currency rules, basis adjustments, and treaty considerations.

Capital Gains on Gifted Stock How the donor's original cost basis transfers to the recipient and determines taxable gain or loss when the gift is later sold.

Capital Gains on Mutual Fund Sale How selling mutual fund shares triggers capital gains tax based on cost basis and holding period, separate from the fund's internal distributions.

Capital Gains on Partnership Interest Sale Capital gains on partnership interest sales mix capital and ordinary income under Section 751 hot assets and hotchpot rules.

Capital Gains on Restricted Stock Units (RSUs) Learn how RSU vesting creates ordinary income and why only post-vesting appreciation qualifies as a capital gain.

Capital Gains on Stock Received in Divorce Capital gains on stock received in divorce—Section 1041 transfers and how the receiving spouse inherits the transferor's basis and holding period.

Capital Gains on the Sale of an S Corporation Understand how an asset sale versus a stock sale of an S-corp produces different mixes of ordinary income and capital gain for the seller.

Capital Gains on the Sale of Rental Property Understand capital gains on sale of rental property and how depreciation recapture creates tax consequences even on break-even sales.

Capital Gains on Timber Sales Section 631 allows timber cutting gains to qualify as long-term capital gains instead of ordinary income, reducing tax rates if conditions are met.

Capital gains tax for investors Capital gains tax is the levy on profit from selling an investment. Long-term gains on assets held over a year receive preferential rates; short-term gains are taxed as ordinary income.

Capital Gains Tax for Married Filing Separately Married filing separately filers face compressed capital gains tax brackets, reduced primary residence exclusion, and other penalties. Learn how they differ from joint filers.

Capital Gains Tax on Cryptocurrency How the IRS treats cryptocurrency as property, which transactions trigger capital gains tax, and how short-term versus long-term rates apply.

Capital Gains Tax on ETF Sales How selling ETF shares triggers capital gains tax differently from mutual funds, including in-kind redemptions that suppress distributions.

Capital Gains Tax on Inherited Property How step-up in basis works at death, what triggers capital gains tax for heirs, and when inherited assets are sold.

Capital Gains Tax on Inherited Stock Inherited stock receives a stepped-up basis at death, resetting the tax obligation: heirs owe capital gains tax only on post-inheritance appreciation.

Capital Gains Tax on REIT Shares How capital gains tax on REIT shares works, including the unrecaptured Section 1250 treatment of REIT return-of-capital distributions.

Capital Gains Tax on Stock Options How NSO and ISO stock-option exercises and share sales generate ordinary income and capital gains under different tax rules.

Capital Gains When Moving Between States How state tax jurisdiction applies to capital gains when you move between states before or after selling an investment.

Capital Loss Carryforward How unused capital losses carry into future tax years to offset future gains and ordinary income.

Capital Loss Carryforward: How Unused Losses Offset Future Gains Understand capital loss carryforward. Unused losses above $3,000 per year roll forward indefinitely to offset future capital gains, retaining their holding period status.

Captive Finance Company A subsidiary that provides financing exclusively for its parent company's products or operations.

Carried Interest The share of profits (typically 20%) that a private equity or hedge fund manager receives, eligible for long-term capital gains taxation rather than ordinary income treatment.

Carryover basis Carryover basis is the rule that when you receive a gift of an asset, your cost basis is the same as the donor's original cost basis, not the fair market value at the time of gift.

Carryover Basis on Gifted Property Recipients of lifetime gifts inherit the donor's original cost basis and holding period; property worth less than its basis at transfer follows the dual-basis rule.

Carryover Basis on Gifted Real Estate How gifted real estate carryover basis works: donor's cost transfers to recipient, but a dual-basis rule applies if fair market value falls below basis at gift.

Casualty Loss Tax Deduction for Real Estate When property damage from storms, fires, or sudden events qualifies for a tax deduction for rental versus personal-use real estate under current tax law.

Charitable Bequest Deduction in Estate Tax Calculation A charitable bequest deduction allows an estate to reduce taxable value dollar-for-dollar for gifts to qualifying charities, filed on Form 706.

Charitable contribution deduction A charitable contribution deduction allows taxpayers to deduct donations to qualified charities. Deductions are limited to 50-60% of adjusted gross income depending on asset type.

Charitable Gift Annuity Tax Treatment How the IRS allocates charitable gift annuity payments between charitable deduction, tax-free basis recovery, and ordinary income, and how appreciated property affects the calculation.

Charitable Lead Trust A split-interest trust that pays income to a designated charity for a term, then transfers the remainder to heirs at reduced transfer-tax cost.

Charitable Lead Trust and Gift Tax Treatment How a charitable lead trust discounts the taxable gift to family heirs by transferring present value to charity, with calculations based on interest rates and trust term.

Charitable Remainder Trust A split-interest trust that converts appreciated assets into a lifetime or term-certain income stream while providing a current income-tax deduction to the donor.

Charitable Remainder Trust in Estate Planning How a CRT converts appreciated assets into lifetime income while reducing estate tax and providing a charitable deduction.

Closed-End Fund Return of Capital Tax Implications How closed-end fund return of capital distributions reduce cost basis, their tax timing, and why they matter at sale for closed-end fund return of capital tax implications.

Collectibles Capital Gains Rate The 28% maximum federal tax rate on long-term gains from art, coins, precious metals, and other collectible property.

Collectibles Capital Gains Tax Rate Collectibles face a 28% maximum long-term capital gains tax rate, not the standard 0/15/20%. Learn which assets qualify and why.

Collective Investment Scheme Regulated pooled investment vehicle that aggregates investor capital to buy securities, domiciled typically in Europe or Asia.

Community Development Financial Institution CDFI lending to underserved communities for tax incentives and impact investing.

Constructive Sale A hedging transaction against appreciated property that triggers a deemed taxable gain under IRC §1092, even without selling the underlying asset.

Constructive Sale Rule and Short Against the Box How the constructive sale rule treats hedging strategies like short-against-the-box as a taxable disposition, triggering capital gains tax without an actual sale.

Converting a Primary Residence into a 1031 Exchange Property A primary residence can qualify as replacement property in a 1031 exchange only after a 24-month holding period and if you haven't claimed the residence exemption.

Cost basis Cost basis is your adjusted purchase price of an investment. Capital gains are calculated as the difference between sale price and cost basis. Choosing the right method can reduce taxes.

Cost Segregation Study Professional reallocation of building component costs to accelerate depreciation deductions and reduce tax liability.

Coverdell ESA Tax Mechanics How the Coverdell Education Savings Account permits tax-free investment growth and penalty-free withdrawals for education expenses within tighter income limits than 529 plans.

Covered Call Tax Treatment How writing covered calls affects holding periods, qualified dividend status, and capital gains taxation when options expire, close, or are exercised.

Covered-Call ETF Tax Treatment Why covered call ETF distributions are taxed as short-term gains and ordinary income, not qualified dividends, and how that affects after-tax returns.

Crummey Powers: Making Trust Contributions Qualify as Annual-Exclusion Gifts How crummey withdrawal rights convert irrevocable trust contributions into present-interest gifts eligible for the annual exclusion, reducing estate taxes.

Cryptocurrency ETF Tax Treatment How spot and futures-based crypto ETFs differ in tax character, the 60/40 rule, and wash-sale rules for cryptocurrency ETF tax treatment.

Cryptocurrency Tax Treatment The IRS treats cryptocurrency as property, triggering capital gains or losses on sales, exchanges, and certain payments. Transactions are reported on Form 8949.

Dealer vs. Investor Classification How the IRS labels frequent house-flippers as dealers, forcing ordinary-income rates on gains instead of capital gains treatment.

Deductions Allowed Against the Taxable Estate The expenses, debts, and losses that reduce the gross estate to the taxable estate, from funeral costs and mortgages to charitable gifts and administrative fees.

Delaware Statutory Trust in 1031 Exchanges How a DST qualifies as like-kind replacement property in a 1031 exchange, allowing multiple investors to co-own real estate without triggering capital gains.

Depreciation Adjustments Under the AMT Learn how AMT requires slower depreciation of real property and personal property using different methods and lives, creating a second tax calculation for many real-estate investors.

Depreciation recapture for investors Depreciation recapture is the tax on the portion of a gain on real estate or depreciable property attributable to depreciation deductions taken during ownership. Gains are taxed at ordinary rates rather than preferential capital gains rates.