Video: Capital Gains and Losses for Individuals

In this lesson, Nick Palazzolo, CPA, unpacks the intricate realm of capital gains and losses, a vital component of individual tax planning that can have profound effects on tax liability. Providing clarity on the inclusion in gross income and the implications on taxable income, Nick delivers insights into the nuances of long-term and short-term capital gains, each with their unique tax implications, and demonstrates the significance of their interaction with Adjusted Gross Income (AGI). But it doesn't end there; Nick further elucidates special cases such as unrecaptured Section 1250 gains, collectibles and qualified small business stock gains, plus the strategies for dealing with net capital loss deductions. Through practical examples, he adeptly navigates through the complexities of netting and carrying forward losses, shedding light on the pitfalls to avoid when dealing with personal bad debts and worthless stock. The lesson is thorough, dotted with key memorization points and clear explications of tax calculations, ensuring a firm understanding of these concepts crucial for tax optimization.