Don't overlook these!
Updated for 2011
Property held for investment purposes may include:
1) Gains or losses on the sale of investment property are classified as:
2) Holding period:
Your holding period determines whether a gain receives short-term or long-term capital gains tax treatment.
Ordinary income tax rates are the regular federal income tax rates that apply to ordinary income such as, wages, self-employment income, interest, dividends.
Qualified dividends are taxed at the capital gains rates. Qualified dividends are reported on Form 1099-DIV in box 1b.
3) Capital losses:
Capital losses are deducted from capital gains. If capital losses exceed capital gains, the excess loss is deductible up to a maximum of $3,000 per year ($1,500 if married filing separately).
A capital loss is deducted on Form 1040 from other sources of income.
4) Where to report capital gains and losses:
Schedule D:
Form 4797:
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