Search results
Results from the WOW.Com Content Network
It is one of two variables in the formula used to compute gains and losses to determine gross income for income tax purposes. The excess of the amount realized over the adjusted basis is the amount of realized gain (if positive) or realized loss (if negative). Computation of gain and loss is governed by section 1001(a) of the Code.
In order to avoid the cumbersome, abrasive, and unpredictable administrative task of valuing assets annually to determine whether their value has appreciated or depreciated, § 1001(a) of the Code defers the tax consequences of a gain or loss in property until it is realized through the "sale or disposition of [the] property."
[5] The Court also held that the amount of gross income on disposition of property is the proceeds less the basis (usually, the acquisition cost) of the property. [6] Gross income is not limited to cash received: it includes "income realized in any form, whether money, property, or services". [7]
Recognition is mostly a matter of timing; the issue is not whether income or loss is taken into account, but when. The time of recognition may matter for a number of reasons, including the time value of money and the section 1211(b) limitation on capital losses in a single year.
After three years his adjusted tax basis is $655,000 = $100,000 + $600,000 - (3 x $15,000). Adjusted basis is one of two variables in the formula used to compute gains and losses when determining gross income for tax purposes. The Amount Realized – Adjusted Basis tells the amount of Realized Gain (if positive) or Realized Loss (if negative).
This tax has long been a contested issue in American politics and economics, as capital gains (generally the income generated from passive investment) are taxed at a significantly lower rate than ...
Individuals paid capital gains tax at their highest marginal rate of income tax (0%, 10%, 20% or 40% in the tax year 2007/8) but from 6 April 1998 were able to claim a taper relief which reduced the amount of a gain that is subject to capital gains tax (thus reducing the effective rate of tax) depending on whether the asset is a "business asset ...
The taxes representing the increase – compared to the base taxes prior to the property’s development – is the pool where a certain amount of revenue can be earmarked for reinvestment back ...