1040 Preparation and Planning 5: Gross Income: Capital Gains and Losses (2023) (Currently Unavailable)

Author: Barbara Weltman, Sidney Kess, Greg White

CPE Credit:  4 hours for CPAs
4 hours Federal Tax Related for EAs and OTRPs
4 hours Federal Tax Law for CTEC

This CPE course, the fifth in the series, covers gains and losses, involuntary conversions, basis, capital and ordinary assets, and capital gains and losses. The course reflects changes made by the Consolidated Appropriations Act, 2022, the Inflation Reduction Act of 2022, and other tax legislation, IRS pronouncements, and court decisions. This course brings the tax preparer "up-to-speed" in preparing 2022 tax returns for the 2023 filing season.

Publication Date: September 2022

Designed For
Tax practitioners.

Topics Covered

  • Gain or Loss on the Sale or Exchange of Property
  • Realization of Gain or Loss
  • Capital Gains Tax
  • Capital Assets
  • Exceptions for Capital Assets
  • Musical Compositions
  • General Treatment of Capital Gains
  • Exceptions for General Treatment of Capital Gains
  • Determination of the Transaction's Tax Treatment
  • Sales and Exchanges of Personal Property
  • Sales and Exchanges of Business and Investment Property
  • General Treatment of Capital Losses
  • Treatment of Capital Losses in Excess of Capital Gains
  • Basis
  • Purchase and Sale of a Going Business
  • Loss on Property Acquired by Gift
  • Adjustments for Gift Taxes Paid
  • Securities Acquired at Different Prices
  • Long-Term and Short-Term Gains and Losses
  • Short-Term Capital Gains and Losses
  • Holding Period
  • Section 1231 Gains and Losses
  • Reporting Cryptocurrency Transactions
  • Installment Method of Reporting Income
  • Tax Rates Applicable to Installment Payments
  • Depreciation Recapture for Installment Reporting
  • Electing Out of Installment Reporting
  • Home Sale Exclusion
  • Exceptions to the Two-Year Test
  • Section 1244 Stock
  • Exclusion of Gain for Small Business Stock
  • Wash Sales
  • Nonbusiness Bad Debts
  • Involuntary Conversions: Examples
  • Involuntary Conversion of a Residence

Learning Objectives

  • Understand how taxable income affects the capital gains rate
  • Describe what a capital asset is
  • Discuss tax basis and holding period
  • Figure gain or loss
  • Apply the capital loss limitation
  • Understand the wash sale rule
  • Discuss the tax treatment of cryptocurrency
  • Determine reporting under the installment sale rule
  • Determine whether a transaction qualifies as a like-kind exchange
  • Explain the rules for involuntary conversions
  • Discuss the tax benefits for Opportunity Zone investments
  • Complete Form 8949 and Schedule D of Form 1040 or 1040-SR
  • Identify what is not one of the three capital gains tax rates
  • Identify the set dollar amount limit for most taxpayers that capital losses in excess of capital gains can be used to offset ordinary income, such as wages and interest
  • Identify the Code Section of the Internal Revenue Code that establishes a special category of assets with respect to which net gain is entitled to the advantages of capital gain treatment
  • Identify how the IRS treats virtual currency, also referred to as cryptocurrency or digital currency
  • Identify how payments received by a landlord for cancellation of a lease are treated
  • Identify what percentage of the gain or loss is recognized if a taxpayer exchanges a life insurance policy for another life insurance policy, under Code Sec. 1035


Instructional Method

NASBA Field of Study
Taxes (4 hours)

Program Prerequisites

Advance Preparation

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