Tax articles
395 plain-English guides to U.S. federal taxes, newest first.
27 results in Capital Gains Tax
ClearWhat Is Tax Form 6781: What It Is And How To Use It
Form 6781 is the IRS form used to report gains and losses from certain financial instruments, specifically Section 1256 contracts and straddles. If that already sounds like a mouthful, don’t worry; we…
What Is Tax Form 6252: What It Is And How To Use It
If you’ve ever sold something big like a rental property or a piece of land and didn’t get all your money upfront, you might have heard of installment sales. And if that’s the case, then Tax Form 6252…
Form 6198: At-Risk Limitations Explained
Taxes aren’t always just about reporting what you earned and paying what you owe. Sometimes, it’s about figuring out how much of your investment or loss you’re actually allowed to deduct. That’s where…
Form 8615: A Guide for Parents and Young Taxpayers
Taxes can be a bit tricky, especially when there are rules that catch families off guard. One of those rules involves Form 8615, or the "Kiddie Tax" form. If you're a parent or guardian of a child or…
Form 4562: How to Depreciate and Deduct Business Property
If you're running a business, even a small one, chances are you’ve spent money on things like equipment, vehicles, or computers to help you do your work. When you make those kinds of purchases, you do…
Form 8995: Qualified Business Income Deduction
If you're a small business owner, freelancer, or self-employed individual, there's a good chance you’ve heard about the Qualified Business Income Deduction (also called QBI); and, if you’ve heard of Q…
Form 8606: Nondeductible IRA Contributions
When it comes to retirement savings, things can get a little tricky once you start mixing traditional IRAs, Roth IRAs, and after-tax contributions. That’s where Form 8606 comes in.
Schedule D: A Friendly Guide to Capital Gains and Losses
If you’ve sold stocks, mutual funds, cryptocurrency, property, or any other type of investment in the last year, chances are you’ve run into something called Schedule D while doing your taxes. It may…
Can Long Term Losses Offset Short Term Gains?
When it comes to investing, taxes play a significant role in determining how much of your profits you actually keep. If you buy and sell stocks, mutual funds, or other investments, you will eventually…
Paying Taxes When You Sell a House
Technically, yes. However, the profit on home sale can be tax free if certain conditions are met. In fact, many home sellers will not even be required to report the sale of their home to the IRS, but…
What Taxes Are Progressive? A Guide on the Progressive Tax System
What taxes are progressive? Well, all of them! At least at the federal level for income tax. The US federal government utilizes a progressive tax system, meaning that tax rates increase (or progress…
About Paying Taxes on Your Winnings From Gambling
Gambling winnings are fully taxable and must be reported on your tax return. However, there are a few key differences on how you might have to report and pay taxes on winnings than from other forms of…
How to Know If You Owe Taxes: The Complete Guide
How will you know if you owe taxes? Well, the IRS makes it no secret, truth be told. In fact, they’re supposed to inform you by mail if you owe them anything; through that initial letter, they will te…
Babies And Tax Returns: A Real (If Unlikely) Pair
The IRS doesn’t discriminate on the basis of age, not even babies. It’s one of those things that sound funny but it’s actually true; a baby (technically, a dependent child of any age) must file a tax…
Understanding S Corp Taxes
S Corps taxes have some of the most unique tax advantages available to small businesses and their shareholders. In short, an S Corp is a designation that the IRS provides to small businesses under Sub…
Do Minors Have To Pay Taxes?
This should come as no surprise to anyone, but the IRS sees little difference between minors and adults when it comes to filing and paying taxes. But, do minors have to pay taxes?
Short-Term Capital Gains Tax: A Quick Guide
A Quick Guide To The Short-Term Capital Gains Tax…
Reporting your Child’s Capital Gains and Dividends on Your Taxes: Form 8814
Little Timmy's investments actually paid off? Congrats! Here's how to put your kiddo's income on your joint tax return.
Explain Form 2439: When Undistributed Long-Term Capital Gains Are Good News for Shareholders
Every 1099-DIV means you owe some new taxes. Well, this is the opposite.
Qualified Dividends vs. Nonqualified Dividends: How Are They Taxed?
It's a battle! Qualified vs nonqualified dividends. If you're looking for the thrill of the day trader, expect a bit of a tax hangover.
Do Capital Gains Count as Income When I'm Doing My Taxes?
Gains, income, gravy train - it's all the same, isn't it? Not to Uncle Sam.
Capital Gains Taxes Really Do Apply to Inherited Property: Here's How and How to Minimize Them
It's sad they passed away, but they left you a house. Selling it may hit you with capital gains, but you can minimize them. What a rollercoaster.
Capital Gains and Income: Are You Ready to Realize How Your Gains Affect Your Taxes?
Did you realize this about your capital gains?
Section 1231 Property, How It Works, And Reporting Them On Your Taxes
Section 1231 of the tax code provides guidance on the treatment of gains and losses derived from the sale or exchange of certain types of property. This section defines “1231 Property” as any deprecia…