Miscellaneous Income

Coin collection

Asked Friday, September 29, 2000 by an anonymous user

CPA Answer:

The sale of your coin collection would be a sale of a capital asset reportable on IRS Schedule D.
It would fall into the category of collectibles and be taxed at a maximum rate of 28%.
Certain newly minted silver or gold coins issued by the government qualify for the lower 20% maximum capital gains rate even though they are considered collectibles.
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Miscellaneous Income

Stamp collection

Asked Friday, September 29, 2000 by an anonymous user

CPA Answer:

The sale of your stamp collection would be a capital asset reportable on IRS Schedule D. It would fall into the category of collectibles and be taxed at a maximum rate of 28%.
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Miscellaneous Income

Antique vase - Sale

Asked Friday, September 29, 2000 by an anonymous user

CPA Answer:

The sale of your antique vase would be a sale of a capital asset reportable on IRS Schedule D. It would fall into the category of collectibles and be taxed at a maximum rate of 28%.
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Depreciation

Depreciation - Real property

Asked Friday, September 29, 2000 by an anonymous user

CPA Answer:

Depreciable real property is categorized as section 1250 property. For sales of section 1250 property, the part of long-term capital gain attributed to depreciation is taxed at a maximum tax rate of 25% and reportable on IRS Schedule D.
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Capital Gains & Losses

Property sale - receiving payments in future years

Asked Friday, September 29, 2000 by an anonymous user

CPA Answer:

You may elect to report the sale on IRS Form 6252 which spreads the tax liability on the gain over the life of the installment period.
You may elect not to use the installment method if you want to report the entire profit in the current year of sale.
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Losses

Is the loss I incurred on the sale of my car deductible?

Asked Friday, September 29, 2000 by an anonymous user

CPA Answer:

No. The loss on the sale of your car would be a sale of personal use property and therefore not deductible.
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Capital Gains & Losses

Is the gain I realized on the sale of my car taxable?

Asked Friday, September 29, 2000 by an anonymous user

CPA Answer:

Yes. The gain on the sale of your car is taxable and reportable on IRS Schedule D. Losses on sales of cars used for personal use are not deductible.
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Capital Gains & Losses

Long term - Holding period

Asked Friday, September 29, 2000 by an anonymous user

CPA Answer:

The long term holding period is more than one year. The short term holding period is one year or less. The significance of this determination is that gains on long term assets benefit from lower tax rates.
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Mutual Funds

How are capital gains from my mutual funds taxed?

Asked Friday, September 29, 2000 by an anonymous user

CPA Answer:

Generally, capital gain distributions from mutual funds are reported to you on Form 1099-DIV box 2a. You will then report this amount as long-term capital gains on IRS Schedule D line 13.
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Losses

Capital loss carryover - married filing separate filing status

Asked Friday, September 29, 2000 by an anonymous user

CPA Answer:

The capital loss carryover from your previous year's married filing joint return may only be claimed on the married filing separate return of the spouse who originally incurred the loss.
You cannot use 50% of the loss if it originated from your spouse's sale of a asset.
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