Fill Form 8815 Losses 2024-2025

Hello, I'm Kenneth. I'm a senior and I'm the CEO and founder of an integrated asset management wealth management and financial planning firm. Today, we're going to talk about what constitutes a long-term capital gain that you must report on Schedule D. First off, let me define what the IRS considers long-term and short-term gain. A long-term gain is any investment, business, or item held for profit or with the intention of profit for more than one year. If it's held for less than one year, it's often referred to as an ordinary income item, even though it is held for profit. It's considered an ordinary income item. Therefore, if you have an investment that you have been holding for more than one year and one day, it may qualify for the long-term capital gains tax treatment. Now, under the new rules with the IRS, these rules will dictate what rate you pay, which is based on your actual income. Currently, if you earn more than a certain limit (single or joint), you may pay either the lower or higher capital gains tax rates. Now, here's a suggestion. If you are taking capital losses, those could be short-term or long-term. They are generally netted out on your Schedule D and put on your 1040 tax return. Many people are misinformed. They have many losses but don't want to realize those losses because they think they are only entitled to a $3,000 deduction. Let me clarify. Let's say you bought a stock for $50,000 and it is now worth $25,000. You don't want to sell it because you don't think you'll be entitled to the $25,000 deduction. Here's my suggestion. If the stock or whatever investment you have doesn't have much potential to grow, and you don't want to lose money against inflation, sell the investment....