Capital Gains Tax Treatment Options & Tax Savings (Completed)

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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. We will also review 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
• Sale of Business
• Sale of Real estate
• Crypto
• Form 1099-K

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
• Evaluate favorable cases for capital gains treatment on business sales
• Understand when Form 1099-K may indicate capital gains reporting
• Identify which forms of Crypto income are eligible for capital gains treatment vs ordinary income
• Understand how the allocation between land and building for favorable real estate sale tax outcomes

Level
Intermediate

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
None