Message Font: Serif | Sans-Serif
 
UnThreaded | Threaded | Whole Thread (4) | Ignore Thread Prev Thread | Prev | Next | Next Thread
Author: rhbthree Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 121216  
Subject: Schedule D Woes Date: 2/10/2001 10:55 AM
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Recommendations: 0
Hi & thanks for reading...

I am attempting to fill out my first Schedule D. I only have two entries 1) the sale of some stock in a company purchase plan (short-term and know the cost basis) 2) the sell of 24 shares when MetLife demutualized. Although the shares were issued in April 2000, it is my understanding that this is to be filed as a long term capital gain since you use the date the policy was issued as the acquired date...so in my case this is over 12 months -> long term gain. Ths cost basis appears to be 0 so I included the sum of the short and long term gains (line 17 of Schedule D) on 1040 line 13. Everything so far makes sense...now for the black magic. Apparetnly, if both your short term and long term are gains and you have taxable income (1040 line 39 > 0) then you can proceed to part 4 of Schedule D. Line 29 is where it gets interesting, here it seems that basically I can reduce my taxable income if it is greater than 43,850 for married filing jointly...and then you take 20% of the long term gain and add it to the tax of 43850. Eventually this ends up on 1040 line 40!!! Now if this is correct...what a savings I need to have long-term captial gains every year!

Anyway, without having the forms and details in front of you does this sound right? I mean can a small long term captial gain significantly reduce you taxable income in this manner?

Thanks.
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (4) | Ignore Thread Prev Thread | Prev | Next | Next Thread

Announcements

Disclaimer:
In accordance with IRS Circular 230, you cannot use the contents of any post on The Motley Fool's message boards to avoid tax-related penalties under the Internal Revenue Code or applicable state or local tax law provisions.
Pencils of Promise - Back to School Drive
"Pencils of Promise works with communities across the globe to build schools and create programs that provide education opportunities for children."
Managing Your Wealth
Our own TMFHockeypop from Rule Your Retirement fame on the TV show Managing Your Wealth.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Post of the Day:
Deranged Monkey Criticism

RadioShack Afloat on a Sea of Financing
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and "#1 Media Company to Work For" (BusinessInsider 2011)! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.
Advertisement