Capital gains taxation

Financial assets, intangible assets

Business assets :

On or before the 15th day of the 4th month

Deadline of annual capital gains tax return

Within 30 days after each sale, exchanged and other disposition of stocks

Deadline of transactional capital gains tax return

Business

Habitual engagement in a commercial activity involving the regular sale of goods or services for a profit

Assets held for sale

Such as inventory

Assets held for use

Such as supplies and items of ppe

Capital assets

Any asset other than ordinary assets

Ordinary assets

Assets used in business

Personal assets, business assets

Basically capital assets are :

Assets held for sale, assets held for use

Basically ordinary assets are :

Selling price exceeds 1,000, initial payment does not exceed 25% of the selling price

Capital gains tax may also be paid in installments if the :

Ordinary assets, capital assets

Classification of taxpayer's property

Preferred stocks, common stocks, stock rights, stock options, stock warrants, unit of participation

Domestic stocks :

Domestic stocks

Evidence of ownership or rights to ownership in a domestic corporation

Stock in trade, real property in the ordinary course, real property subject to the allowance for depreciation, real property used in trade or business

Examples of ordinary assets

Tax refund /tax credit

Excess transactional payment

Specific identification, moving average method, fifo

Methods of tax basis of stocks

Through the pse, directly to buyer

Modes of disposing domestic stocks

Wash sales of stocks, tax free exchanges

Special tax rules in capital gain or loss Measurement

Transactional capital gains tax, annual capital gains tax

Tax compliance under the old law

Ordinary gain, capital gain

Types of gains on dealings in properties