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