Investment and Finance
The most frequently asked tax questions related to Investment and Finance
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Answer Tax QuestionsLate December sale of stock - reportable in the current year or following year?
Asked Friday, September 29, 2000 by an anonymous user
Gain on sales of year-end publically traded securities must be reported in the current year even though you will receive payment in the following year.
Selling expenses on sale of property
Asked Friday, September 29, 2000 by an anonymous user
Selling expenses should be added to the cost amount and subtracted from the gross proceeds sales amount on IRS Schedule D. This will help insure that the gross proceeds figure agrees with the 1099 slip that the IRS will receive.
Basis for Inherited property
Asked Friday, September 29, 2000 by an anonymous user
Generally your basis of inherited property is the fair market value of the property on the date of the decedent's death.
Speak to your local CPA about the exceptions that would determine when the fair market value should not be used.
Speak to your local CPA about the exceptions that would determine when the fair market value should not be used.
Tract of land sale - divided into lots, How do I determine the gain or loss
Asked Friday, September 29, 2000 by an anonymous user
The total purchase price of a tract of land must be allocated to each lot based on the relative value of each lot, so that the eventual gain or loss of each lot in the year of sale may be determined.
Worthless stock - 3 year or 7 year carryback
Asked Friday, September 29, 2000 by an anonymous user
If you discover you didn't claim a valueless stock loss on your original tax return in the year it became worthless, you can file a claim for a credit or refund due to the loss.
Just file Form 1040X to Amend your return for that year.
You have up to seven years from the date your original return had to be filed.
Just file Form 1040X to Amend your return for that year.
You have up to seven years from the date your original return had to be filed.
Is my non-business bad debt limited?
Asked Friday, September 29, 2000 by an anonymous user
Possibly yes. A non-business bad debt is reportable as a short term capital loss transaction and should be entered on IRS Schedule D.
You would need to attach a supporting schedule describing the loan, relationship to the debtor, how you tried to collect it and how you determined it was worthless.
You can use it to offset capital gains, and up to $3,000 of other income.
You would need to attach a supporting schedule describing the loan, relationship to the debtor, how you tried to collect it and how you determined it was worthless.
You can use it to offset capital gains, and up to $3,000 of other income.
What is a Wash Sale ?
Asked Friday, September 29, 2000 by an anonymous user
A wash sale occurs if you sell stock or securities at a loss, and within 30 days before or after that sale, you buy or acquire (in a fully taxable trade or enter into a contract to acquire substantially) identical stock or securities. The deduction for the wash sale loss will not be allowed, and the basis of the stock will be increased by the amount of the previously disallowed loss.
Is the conversion of my convertible bond to common stock a taxable transaction?
Asked Friday, September 29, 2000 by an anonymous user
No. The conversion to common stock is not a taxable event. The cost basis of the converted common stock is the original cost basis of the converted bond.
Stock warrant conversion
Asked Friday, September 29, 2000 by an anonymous user
The exercise of your stock warrants is not a taxable event.
