Capital Gain or Ordinary Income? (Completed)

Date: Tuesday, November 19, 2019
Instructor: Jennifer Kowal
Begin Time:  9:00am Pacific Time
10:00am Mountain Time
11:00am Central Time
12:00pm Eastern Time
CPE Credit:  2 hours for CPAs
2 hours Federal Tax Related for EAs and OTRPs
2 hours Federal Tax Law for CTEC
2 hours Income Tax Planning for CFP

Recognizing which assets are capital assets can save significant tax amounts, especially with a rate difference of more than 20 percent between long-term capital gain and ordinary income. This course will provide detailed training on the types of assets that produce long-term capital gain and loss upon sale, with case studies involving real estate, intellectual property, internet based sales, and more. Ms. Kowal will also explain the applicability of the five different possible capital gain rates that apply to different types of income, and the applicability of the 3.8% Medicare tax to certain capital gain transactions.

Who Should Attend
Tax practitioners at all levels who provide advice and return preparation involving sale transactions.

Topics Covered

  • Definition of capital asset
  • Explanation of five different capital gain rates and when each applies
  • Capital gain and loss netting rules
  • 3.8% Medicare tax on unearned income as applied to capital gain transactions

Learning Objectives

  • Recognize which assets are capital assets
  • Identify how to net capital gains and losses together
  • Differentiate how to calculate the correct capital gain rates on various types of capital assets


Instructional Method
Group: Internet-based

NASBA Field of Study
Taxes (2 hours)

Program Prerequisites
Basic familiarity with sale transactions and how to calculate gain and loss.

Advance Preparation

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