Rich Carreiro wrote:
- quote -

Thanks. Between this group and the unmoderated tax
newsgroup, I got my question answered.

RL

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"raylopez99" <raylopez99[at]yahoo.com> writes:

- quote -

That is correct.

Another way to look at it is that LTCG is income, just
like any other income (which is why it counts towards
AGI and therefore can phase out various deductions,
credits, etc.), except that it gets taxed at a special rate.

--
Rich Carreiro rlcarr[at]animato.arlington.ma.us

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raylopez99 wrote:

- quote -

Wasn't this question already answered on
Misc.taxes.unmoderated?

Moderator:
I wouldn't know as I have more importnat things than
reading reading the funny farm newsgroup like talking to
wife and my son Joshua who really is a neat kid.

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raylopez99 wrote:

- quote -

Only correct if you have gains from collectibles or
unrecaptured Sec. 1250 property gain. Otherwise, you just
use the worksheet in the 1040 booklet on page 38.

- quote -

Three worksheets if you have 28% gain and 1250 recapture.

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Hi all-- I need to understand Schedule D long-term capital
gains (LTCG) and how to report them.

Let me state my thesis up front, which might explain what
I'm trying to figure out. It seems that with Schedule D,
assuming no carryover loses, no short term trades, and
nothing but long-term capital gains, you essentially have to
figure out your tax twice (assume a few qualified dividends
too).

Once you figure out LT CG the "normal" way on page 1 of
Schedule D, and at line 15 (or 16) of Schedule D you fill in
a (positive) number. Fine. Then you fill in Form 1040, line
13 with this number. OK. But of course since these gains
are "long term" you must, according to the 'logic' (not very
clear) of the instructions of Schedule D, you must refigure
out what your "real" taxes are, using the so-called "28%
Rate Gain Worksheet" (Sch. D Instructions, page D-7 for
line 18 of Sch. D) and then the "Schedule D Tax Worksheet"
(Sch. D Instructions, page D-9).

Correct?

In other words, you essentially, for Form 1040, line 13,
treat LTCG as "ordinary income" to come up with a Adjusted
Gross Income (line 37 of Form 1040). Then you use the
Instruction Worksheets (two of them, above) to figure out
your "real" tax.

All very confusing.

The only reason I ask now is that in years past I had
nothing but carryover losses, so I always simply deducted
the maximum $3k and reported that on Form 1040, line 13.

Thanks,

RL

<< ================================================== ===== > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ================================================== ===== >