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Capital Losses

Beware of potential tax issues when selling self-created intangibles

(LTCG) Net Long-Term Capital Gain, Capital Losses, Federal Taxes, Intangible Assets, Ordinary Income Tax, Small Business, Small Business Tax Tips, Small Business Tips /

Many modern businesses rely on intangible assets, such as goodwill, trademarks and customer lists. But the IRS doesn’t treat all intangibles the same way. Questions about how these assets are taxed often arise when a business is sold, ownership changes hands, or intellectual property is licensed or transferred. Generally, intangibles qualify as capital assets that generate capital […]

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The “wash sale” rule: Don’t let losses circle the drain

Capital Gains, Capital Losses, Cryptocurrency, Federal Taxes, Individual Tax Tips, Investment, Mutual Funds, Securities, Stocks, Tax Savings, Wash Sale /

Stock, mutual fund and ETF prices have bounced around lately. If you make what turns out to be an ill-fated investment in a taxable brokerage firm account, the good news is that you may be able to harvest a tax-saving capital loss by selling the loser security. However, for federal income tax purposes, the wash

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Deduct a loss from making a personal loan to a relative or friend

Applicable Federal Rates (AFRs_, Business Bad Debt Deduction, Capital Losses, Federal Taxes, Personal Loans, Tax Implications Of Making a Personal Loan /

Suppose your adult child or friend needs to borrow money. Maybe it’s to buy a first home or address a cash flow problem. You may want to help by making a personal loan. That’s a nice thought, but there are tax implications that you should understand and take into account. Get it in writing You

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Turning stock downturns into tax advantages

Capital Gains, Capital Losses, Federal Taxes, Stock Market, Taxes and Tips /

Have you ever invested in a company only to see its stock value plummet? (This may become relevant in light of recent market volatility.) While such an investment might be something you’d rather forget, there’s a silver lining: you can claim a capital loss deduction on your tax return. Here are the rules when a

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Exploring business entities: Is an S corporation the right choice?

Business Entities, Capital Losses, Fringe Benefits For Employees, Gross Profit, Qualified Business Income Deducton (QBI), S Corporation, Shareholder, Small Business, Small Business Owners, Small Business Stock /

Are you starting a business with partners and deciding on the right entity? An S corporation might be the best choice for your new venture. One benefit of an S corporation One major advantage of an S corporation over a partnership is that shareholders aren’t personally liable for corporate debts. To ensure this protection, it’s crucial to: Handling

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Unlocking the mystery of taxes on employer-issued nonqualified stock options

(LTCG) Net Long-Term Capital Gain, (NIIT) Net Investment Income Tax, Capital Gains, Capital Losses, Employee Stock Ownership Plans, Employment Tax, Federal Income Tax, Stocks, Tax Planning /

Employee stock options remain a potentially valuable asset for employees who receive them. For example, many Silicon Valley millionaires got rich (or semi-rich) from exercising stock options when they worked for start-up companies or fast-growing enterprises. We’ll explain what you need to know about the federal income and employment tax rules for employer-issued nonqualified stock

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Claiming losses on depreciated or worthless stock

Capital Gains, Capital Losses, Investment, Ordinary Income Tax, Stocks, Tax Savings /

Have you bought stock in a company that later dropped in value? While you may prefer to forget such an ill-fated investment, at least you can claim a capital loss deduction on your tax return. Here are the rules that apply when a stock you own is sold at a loss or becomes completely worthless.

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