Capital Gains & Losses

Front 1

Capital Gains & Losses

Calculation rules

Back 1

*Amount Realized*
< Adjusted Basis of Asset Sold >
*Gain/ Loss*

Front 2

Capital Gains & Losses

A. Amount Realized

Back 2

1.Cash received (boot)
2.Cancellation of debt (boot);
3.Property received at fair market value; and
4. Services received at fair market value
5. Reduce the amount realized by any selling expenses (e.g., broker's commissions

Front 3

Capital Gains & Losses

B. Adjusted Basis of Asset Sold ( Purchased , Gifted , Inherited )

Back 3

1 . Purchased Property Basis = (Cost)

2 . Gifted Property Basis = GR Donor's (Rollover Cost)

*Exception - Lower FMV at Date of Gift
(1) Sale of Gifts at Price > Donor's Rollover Basis (gain basis)
(2) Sale of Gift at Price < Lower FMV (loss basis)
(3) Sale < Rollover Cost but > Lower than FMV (in the middle no G/L)
P A S S K E Y
Sell higher-----Use "donor's basis" to determine gain
Sell between --------------No gain or loss
Sell lower---------------Use "lower FMV at date of gift" to determine loss

3 . Inherited Property Basis = GR (FMV)