DESIGNED FOR
Accounting and finance professionals who advise clients on income strategies, tax implications, and financial planning considerations related to capital assets
BENEFITS
- Define capital assets and distinguish them from ordinary income assets and Section 1231 assets
- Explain the concepts of realization and recognition, including key provisions for deferral or exclusion of capital gains
- Identify scenarios where capital losses may be disallowed or limited, including personal use assets, wash sales, and related-party transactions
- Differentiate between short-term and long-term capital gains/losses and their respective tax treatments
- Apply the proper methodology for netting capital gains and losses, including the $3,000 ordinary annual income offset limitation
- Calculate tax liabilities incorporating both ordinary income and capital gains components
- Distinguish between marginal and effective tax rates and their implications for tax planning
- Develop tax-efficient strategies for managing capital assets that align with client goals and regulatory compliance requirements
HIGHLIGHTS
- Capital asset classification and basis determination
- Realization vs. recognition rules and special scenarios
- Disallowed losses and related limitations
- Types of capital gains and losses and their tax treatment
- Netting capital gains and losses
- Calculating taxes on ordinary income and capital gains
- Marginal vs. effective tax rates
- Tax planning strategies for capital assets
ADVANCE PREPARATION
None