Capital Gains Tax Treatment Options & Tax Savings

Author: Jane Ryder

Per the IRS Education Provider Standards this course must be COMPLETED by 12/31/2028 to receive credits. NOTE: Go to My Professional Profile in your CCH CPELink account settings to ensure your name, and PTIN number; matches your PTIN card

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.

Publication Date: May 2025

Designed For
Tax practitioners at all levels who provide advice and return preparation involving sale transactions.

Topics Covered

• CG Tax Treatment Options & Tax Savings
• Tax Treatment of Capital Gains and Losses for Individuals
• Quantifying Net Capital Gains
• Net Investment Income Tax on Capital Gains Income
• Net Investment Income MAGI Thresholds
• Capital Gain Distributions
• Identifying Capital Assets
• What Are Not Capital Assets?
• Losses From the Disposition of Personal Assets Not Deductible
• Holding Period of Assets to Determine Long-Term or Short-Term
• 1231 Favorable Tax Treatment, Includes Recapture Provisions
• Section 1245 Property and Recapture Provisions
• Categories of Rental Real Estate or Commercial Use Property
• Deductible Nonbusiness Bad Debts
• Tax Treatment of Digital Asset Transactions
• Other Investment Transactions: Capital Gain vs Ordinary Income Considerations

Learning Objectives

• Recognize which assets are capital assets
• Identify how to net capital gains and losses together
• Identify how to calculate the correct capital gain rates on various types of capital assets
• Explain how to evaluate favorable cases for capital gains treatment on business sales
• Identify when Form 1099-K may indicate capital gains reporting
• Identify which forms of crypto income are eligible for capital gains treatment vs ordinary income
• Identify the allocation between land and building for favorable real estate sale tax outcomes

Level
Intermediate

Instructional Method
Self-Study

NASBA Field of Study
Taxes (2 hours)

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

Advance Preparation
None