Tax Debt Help - Guide for Capital Gains

Capital gains are the profits earned on an investment in stocks, bonds, mutual funds, real estate, or collectibles. The following is a brief description of the types of capital gains that are reportable on your tax return.

Capital Gains Tax: Essential Tax Tips for Capital Gains & Losses A capital gain is the difference between what you paid for an investment and what you received when you sold that investment. If you made a profit on the investment, then you have a capital gain. If you lost money on the investment, then you have a capital loss. Covers record-keeping, calculating capital gains and cost basis.

Capital Gains WorksheetUse financial software or spreadsheets to track all your investment information in one place. This will save you time and frustration at tax time. Here's some tips for keeping on top of your capital gains information.

Selling Your Home: Capital Gains Tax on the Sale of a Main Home How to calculate capital gains taxes on the sale of a main home. Plus tips for lowering your capital gains using the Section 121 capital gains exclusion when selling your principal residence.

Capital Gains and Mutual Funds: Calculating Capital Gains on SharesCalculating capital gain or loss when selling shares of a mutual fund can be complicated. Essential information about capital gains distributions, calculating mutual fund cost basis, and figuring capital gains or losses.

Wash Sale Rule on Capital Losses If you buy the same stock within one month of selling that stock for a loss, your loss will be disallowed under the Wash Sale Rule. The loss is not gone forever, the disallowed is added to your cost basis in the new stock position.

Adjusted Basis DefinitionDefinition of "Adjusted Basis": the net cost of an asset after adjusting for various tax-related items.

Cost Basis Definition Definition of "Cost Basis": the original price of an asset, such as stocks, bonds, mutual funds, property, or equipment. Cost basis includes the purchase price and any associated purchase costs.

Sample Mutual Fund Cost Basis SpreadsheetSample spreadsheet for keeping track of actual cost basis in a mutual fund using the specific identification method of accounting.

S. Raines, Sr. Financial Advisor/Tax Preparer