Capital Gains

The speaker discusses how a 1031 exchange can bypass any capital gains taxes that would result from gains on a property held for less than 2 years.  She also mentions how a 1031 exchange can recapture depreciation tax.

The speaker provides a very basic definition of capital gains tax and distinguishes between short term and long term capital gains. 

The speaker discusses the capital gains taxes on mutual funds this year.  Even though most mutual funds are down, some investors may have actually sold their funds at a gain throughout the year and this may create a taxable burden in non-retirement accounts.  Ad

Any asset you own for investment purposes is considered a capital asset.  This can include, stocks, bonds, real estate, or even a baseball card.  When you acquire this asset, the cost is considered to be the basis and the difference between the sales price and the basis is known as a capital gain or capital loss.  Capital gains and losses are recorded on your 1040,