Capital Assets - Basis & Taxation (Completed)
Date: Tuesday, March 10, 2026
Instructor: Daniel Johnson
| Begin Time: |
11:00am Pacific Time
12:00pm Mountain Time
1:00pm Central Time
2:00pm Eastern Time |
| CPE Credit: |
1 hour for CPAs
1 hour Federal Tax Related for EAs and OTRPs
1 hour Federal Tax Law for CTEC |
|
NOTE: Go to My Professional Profile in your CCH CPELink account settings to ensure your name, and PTIN number; matches your PTIN card
This course provides a comprehensive overview of the taxation of capital assets, including classification, basis determination, realization versus recognition of gains and losses, disallowed losses, types of capital gains and losses, netting rules, tax calculation methodologies, and the distinction between marginal and effective tax rates. Participants will learn how to apply tax code provisions to real-world scenarios for accurate compliance and effective tax planning.
Stay ahead of evolving tax regulations and position yourself as a trusted advisor in capital asset planning.
Topics Covered
- Overview and classification of capital assets under IRC Section 1221
- Determination and adjustment of tax basis
- Realization vs. recognition of gains and losses
- Like-kind exchanges (IRC §1031)
- Involuntary conversions (IRC §1033)
- Exclusion of gain on sale of primary residence (IRC §121)
- Qualified small business stock exclusion (IRC §1202)
- Spousal/divorce property transfers (IRC §1041)
- Inherited property basis step-up (IRC §1014)
- Disallowed loss rules: personal-use assets, conversions, gifts, related-party transactions, wash sales, capital loss carryforwards at death
- Types of capital gains and losses (short-term, long-term, qualified dividends, AMT considerations)
- Netting rules for capital gains and losses, $3,000 annual ordinary income offset, carryforwards
- Section 1244 small business stock loss treatment
- Worthless securities and nonbusiness bad debts
- Calculating taxes: ordinary income vs. capital gains rates
Learning Objectives
- Define and classify capital assets under the Internal Revenue Code, identifying exceptions to capital asset treatment
- Apply rules for determining and adjusting an asset’s tax basis, including scenarios involving improvements, depreciation, and stepped-up basis
- Distinguish between realization and recognition events, including deferral provisions such as like-kind exchanges, involuntary conversions, and exclusions
- Identify disallowed loss rules, including wash sales, related-party transactions, personal-use property, and conversion to business use
- Calculate capital gains taxes by properly netting gains and losses, applying correct tax rates, and integrating these with ordinary income taxation for accurate liability determination
Level
Intermediate
Instructional Method
Group: Internet-based
NASBA Field of Study
Taxes (1 hour)
Program Prerequisites
Basic understanding of Capital Assets
Advance Preparation
None
