Stocks, bonds, and property are considered capital assets. When you sell or otherwise dispose of a capital asset, this can create a taxable event that must be reported to the IRS for income tax purposes. The IRS states that when you sell a capital asset, the difference between the adjusted basis in the asset and the amount you realized from the sale is a capital gain or a capital loss.
The IRS requires taxpayers to report capital gains on their tax return. Furthermore, capital losses may be used to offset capital gains. Reporting capital gains and losses can be complicated. Consulting with a tax professional can help you accurately report capital gains and losses on your tax return.
Easy Tax Service in Prescott Valley can help if you have any questions about reporting capital gains and losses. Our tax preparers have over fifty years of combined experience preparing taxes. Easy Tax Service is open year-round and committed to providing high-quality tax preparation service at a price you can afford. Please give us a call at 928-775-7000 to schedule an appointment today.