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#4
03-21-2008, 06:47 PM
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 Re: Long term capital gain tax question In article <m38x0d9c3p.fsf[at]swing-shift.time-tripper.com> , Rich Carreiro <rlc-news[at]rlcarr.com> wrote: - quote - > kb <kilroybass[at]usa.com> writes:
very threatening letter, especially if you sold a personal residence> > My gross income in 2007 was less than $8,750. > > In 2007, I sold a stock which I had held since 1998. I understand > > that I need to file Schedule D and 1040 because of the long term > > capital gain tax. However, I read in the instructions of the > > 1040, that I should file tax return if my gross income was $8,750. > > However, my gross income was less than that figure. > > > My question is: should I file the 1040? > If your other income plus the reported gross *proceeds* > are more than $8,750, strongly consider filing even if > technically you don't have to. If you don't file, the > IRS will assume the entire sales proceeds are a gain (i.e. > will assume zero basis). They will then send you correspondance > asking why you didn't file and you'll have to deal with that. > If you instead of just file (even though you don't have to), > you won't have to deal with any of that. And if you lived in California the Franchise Tax Board would send you a whose gain was tax exempt -- << ------------------------------------------------------- > << 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 (2007) - All rights reserved. > << ------------------------------------------------------- > |
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#3
03-21-2008, 06:47 PM
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| Re: Long term capital gain tax question In article <m38x0d9c3p.fsf[at]swing-shift.time-tripper.com> , Rich Carreiro <rlc-news[at]rlcarr.com> wrote: - quote - > kb <kilroybass[at]usa.com> writes:
a really nasty letter from the Franchise Tax Board (FTB) along the same> > My gross income in 2007 was less than $8,750. > > In 2007, I sold a stock which I had held since 1998. I understand > > that I need to file Schedule D and 1040 because of the long term > > capital gain tax. However, I read in the instructions of the > > 1040, that I should file tax return if my gross income was $8,750. > > However, my gross income was less than that figure. > > > My question is: should I file the 1040? > If your other income plus the reported gross *proceeds* > are more than $8,750, strongly consider filing even if > technically you don't have to. If you don't file, the > IRS will assume the entire sales proceeds are a gain (i.e. > will assume zero basis). They will then send you correspondance > asking why you didn't file and you'll have to deal with that. > If you instead of just file (even though you don't have to), > you won't have to deal with any of that. And even if the IRS didn't bother you residents of California would get lines. Especially if your capital gain was exempt (such as the sale of a house where the gain was less than $250K for a single person etc -- << ------------------------------------------------------- > << 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 (2007) - All rights reserved. > << ------------------------------------------------------- > |
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#2
03-21-2008, 12:00 PM
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| Re: Long term capital gain tax question On Mar 20, 4:19*pm, kb <kilroyb...[at]usa.com> wrote: - quote - > My gross income in 2007 was less than $8,750. > In 2007, I sold a stock which I had held since 1998. *I understand > that I need to file Schedule D and 1040 because of the long term > capital gain tax. *However, I read in the instructions of the > 1040, that I should file tax return if my gross income was $8,750. > However, my gross income was less than that figure. > My question is: should I file the 1040? don't you want free money from the government? -- << ------------------------------------------------------- > << 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 (2007) - All rights reserved. > << ------------------------------------------------------- > |
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#1
03-20-2008, 11:08 PM
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| Re: Long term capital gain tax question "kb" <kilroybass[at]usa.com> wrote - quote - > My gross income in 2007 was less than $8,750. > In 2007, I sold a stock which I had held since 1998. I understand > that I need to file Schedule D and 1040 because of the long term > capital gain tax. However, I read in the instructions of the > 1040, that I should file tax return if my gross income was $8,750. > However, my gross income was less than that figure. > My question is: should I file the 1040? How much was the gross sales amount (the proceeds not the gain) on the stock sale? That amount, in addition to all other income, will decide if you need to file. But of course, this year is different, and you may want to - and indeed need to - file to receive your "economic stimulus" check later this summer. -- Paul A. Thomas, CPA Athens, Georgia -- << ------------------------------------------------------- > << 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 (2007) - All rights reserved. > << ------------------------------------------------------- > |
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03-20-2008, 11:04 PM
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| Re: Long term capital gain tax question kb <kilroybass[at]usa.com> writes: - quote - > My gross income in 2007 was less than $8,750.
If your other income plus the reported gross *proceeds*> In 2007, I sold a stock which I had held since 1998. I understand > that I need to file Schedule D and 1040 because of the long term > capital gain tax. However, I read in the instructions of the > 1040, that I should file tax return if my gross income was $8,750. > However, my gross income was less than that figure. > My question is: should I file the 1040? are more than $8,750, strongly consider filing even if technically you don't have to. If you don't file, the IRS will assume the entire sales proceeds are a gain (i.e. will assume zero basis). They will then send you correspondance asking why you didn't file and you'll have to deal with that. If you instead of just file (even though you don't have to), you won't have to deal with any of that. -- Rich Carreiro rlc-news[at]rlcarr.com -- << ------------------------------------------------------- > << 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 (2007) - All rights reserved. > << ------------------------------------------------------- > |
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#-1
03-20-2008, 10:19 PM
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| Long term capital gain tax question My gross income in 2007 was less than $8,750. In 2007, I sold a stock which I had held since 1998. I understand that I need to file Schedule D and 1040 because of the long term capital gain tax. However, I read in the instructions of the 1040, that I should file tax return if my gross income was $8,750. However, my gross income was less than that figure. My question is: should I file the 1040? -- << ------------------------------------------------------- > << 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 (2007) - All rights reserved. > << ------------------------------------------------------- > |
| Tags |
| capital, gain, long, question, tax, term |
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