 |
|
| Browse | Ask | Answer | Search | Join/Login |
|
|
||||
|
Q: Amened tax return involving long-term capital gains
Hi, I need to amend my tax return for 2006. I overlooked money that I got from selling stocks that I held for more than 5 years. I think that the tax rate on this money would be lower than my income rate since it was a risk investment and I held it for more than 5 years. The Amendment form 1040X does not seem to be able to handle this situation. It seems to only cover adjustments to income taxed at the normal tax rates for income.
What federal tax rate would apply to this gain? How would I submit the amendment?---What IRS form? Do I have to submit an amended state (NJ) return? What would be the percent for the state tax for this long term capital gain, if any? Thanks EdQ |
||||
|
||||
|
You submit 1040X along with a corrected Schedule D, showing your gain from the sale of the stock. The income from the stock sale is included along with your other sources of income on line 1 of 1040X. Because you held the stock for more than 1 year, it is considered a long term gain. The tax rate on long term gains is either (a) 5% if you're in a 15% or lower tax rate for ordinary income, or (b) 15% if you're in a higher tax bracket (i.e, 25% bracket and up).
Yes, you should submit an amended NJ return. Here's a link to the IRS web site that explains how to file the 1040X. Amending Your Tax Return |
||||
| Question Tools | Search this Question |
Add your answer here.
Check out some similar questions!
Back in 2000 and 2001, I had short term capital losses that exceeded the 3000 dollar limit. Each year, I've been able to deduct 3000 dollars since my short term gains have been minimal. I still haven't used up all my 2000 and 2001 short term losses. I had some long term gains in 2000, but...
Hi, Please update me on the latest tax rates when it comes to Short term & Long term capital gains from equity investments. Any information will be highly appreciated Thanks Gaurav
I used TaxAct to do my 2005 taxes. During 2005 I sold stock that I held for more than 2 years. When I reviewed the TaxAct print out, there was no discount on the gains from the stock sale. When I sold stock in the past (long term), only a portion of the gains was recorded as income. Is long term...
Hello: My mother-in-law passed away on July 23rd. Just prior to her passing, she had sold her home/apartment buildings for $220K. She had an $80K basis in that property, which is what it was worth when it was built in the 1960's. She lived in the apartment building she owned in 2 of 12 units, or...
"Short-term stock gains are taxed as ordinary income. Therefore, the nominal tax rate will be whatever tax bracket you are in. More explicitly, it will be taxed at the federal tax rate (bracket) as determined by your taxable (not gross) income line on your federal tax return." If all of my income...
View more questions Search
|
