CCH Learning Center

Capital Gains and Losses: Taxation Fundamentals

The Jobs and Growth Tax Relief Reconciliation Act of 2003 lowered regular income tax rates and substantially changed the treatment of dividends and capital gains under the Code. As a result, converting ordinary income into capital gain can be rewarded by significant tax savings.

This course will provide the user with an understanding of the code sections governing the tax treatment of capital gains and losses and provide a working understanding of how these rules operate. It will also review recent legislation significantly affects the tax treatment of capital gains.

Topics covered include:

• When transactions are treated as a sale or exchange
• Capital assets
• Holding periods
• Combining capital gains and losses
• Net capital loss carryover
• Corporate capital loss treatment
• Code Sec. 1231 assets
• Sale of depreciable property at a gain
• Recapture of deductions
• Buy/Sell options
• Dealers in securities
• Sales of real property