John M. Hoffman & Associates CPAs

Frequently Asked Questions

Capital Gains and Losses

Capital gains and losses are a critically important part of our tax system. Long term capital gains work very much to your tax advantage. On the other hand capital losses work very much to your disadvantage.

• "What is a capital gain or loss?"

• "How are my capital gains and losses taxed?"

• "But what about that 'Alternative Minimum Tax' (AMT) and capital gains?"

• "What about capital gain dividends on mutual funds I own?"

• "What about wash sales - what is that all about?"

• "Hoffman is always touting Capital Gain income as the best - why is this?"

• "What about capital gains on something I inherited - how does that work?"