Capital Gains & Losses
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- Section 1244 Stock
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- Section 1231 Gains and Losses
- Figuring Basis
- Amount Realized
- Holding Period
- Computing Capital Gains and Losses (the netting process)
- Schedule D and Form 8949
- Form 1099-B
- Capital Gains Rate Table
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- Top Tax Myths
- Per Diem Rates - IRS Publication 1542 Oct 2011 for Travel Within the Continental U.S (for employers who pay a per diem allowance to employees)
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Need Some Deductions for 2011?
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Updated for 2011
Holding Period
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When the Holding Period Begins for Certain Types of Items
1) Stocks and bonds traded on a public exchange:
The holding period begins the day after the trade date and ends on the trade date you sold securities.
Trade date:
- The trade date for stock sold on a public exchange is the date your purchase or sales order is executed.
- Don't confuse the trade date with the settlement date.
Settlement date:
- This is the date when securities are delivered and paid for.
- The settlement date may occur several days after the trade date.
2) Taxable stock dividends:
The holding period for taxable stock dividends begins on the date of distribution.
3) Nontaxable stock dividends:
The holding period for new stock you receive as a nontaxable stock dividend begins on the same day as the holding period for the old stock.
4) Stock acquired in a spin off:
A spin-off is a distribution of stock from a controlled corporation.
The holding period for new stock you receive begins on the same day as the holding period for the old stock.
5) Tax-free stock right:
When you exercise rights to acquire corporate stock from the issuing corporation, your holding period for the stock begins on the day of exercise, not on the day after.
You are deemed to exercise stock rights when you assent to the terms of the rights in the manner requested or authorized by the corporation.
An option to acquire stock is not the same as a stock right.
Next:
Holding Period: When the Holding Periods Begins for Certain Types of Items (Continued)
Related Links
- What are Capital Assets?
- Selling Investment Property
- Capital Losses and Ordinary Losses Explained
- Nine Rules for Capital Losses.
- What is Section 1244 Stock?
- Special Tax Treatment for Personal Use Property
- Property Not Classified as a Capital Asset
- Inventory, Accounts Receivable, and Notes Receivable
- Depreciable Business Property
- Form 4797, Sale of Business Property
- What is Section 1231?
- What is Basis
- Unadjusted Basis
- Adjusted Basis
- Figuring Amount Realized
- What Is Your Holding Period?
- How to Determine Your Holding Period
- Selling Stock
- The Netting Procedure
- Transactions Reported on Schedule D
- Form 1099-B Explained
- Transactions Reported on Schedule D
- Form 1099-B Explained
- Transactions Reported on Schedule D
- Form 1099-B Explained
- Tax Planning Opportunity for Tax Years 2008 through 2010
- Gifting Appreciated Property
- Table: Capital Gains Rates
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