Surgent's Capital Assets: Basis & Taxation for Financial Professionals

Overview

This course provides a comprehensive understanding of capital assets taxation, basis determination, and related tax planning strategies. Participants will explore the fundamental classification of capital assets, the distinction between realization and recognition of gains and losses, and the complex rules governing disallowed losses. The course thoroughly examines the various types of capital gains and losses, including short-term, long-term, and special categories such as unrecaptured Section 1250 gains and collectibles. Attendees will learn the intricacies of netting capital gains and losses, calculating tax liabilities across different income types, and distinguishing between marginal and effective tax rates. The course also covers advanced topics including basis adjustments, wash sale rules, related-party transactions, and inherited property treatment. By the end of the course, participants will be equipped with the knowledge and tools to guide clients in implementing effective capital asset strategies that minimize tax liabilities while ensuring regulatory compliance.

Prerequisites

None

Objectives

• Define capital assets and distinguish them from ordinary income assets and Section 1231 assets
• Explain the concepts of realization and recognition, including key provisions for deferral or exclusion of capital gains
• Identify scenarios where capital losses may be disallowed or limited, including personal use assets, wash sales, and related-party transactions
• Differentiate between short-term and long-term capital gains/losses and their respective tax treatments
• Apply the proper methodology for netting capital gains and losses, including the $3,000 ordinary annual income offset limitation
• Calculate tax liabilities incorporating both ordinary income and capital gains components
• Distinguish between marginal and effective tax rates and their implications for tax planning
• Develop tax-efficient strategies for managing capital assets that align with client goals and regulatory compliance requirements

Highlights

• Capital asset classification and basis determination
• Realization vs. recognition rules and special scenarios
• Disallowed losses and related limitations
• Types of capital gains and losses and their tax treatment
• Netting capital gains and losses
• Calculating taxes on ordinary income and capital gains
• Marginal vs. effective tax rates
• Tax planning strategies for capital assets