Individual Income Tax
Chapters in this video
- 0:00 Capital gains losses and the unlimited gains offset rule
- 1:23 The $3,000 ordinary income loss limit and carryforward
- 2:26 Wash sale rule and deferred loss added to basis
- 3:18 Qualified dividends versus ordinary dividend traps
- 4:06 Marginal rate versus effective rate bucket analogy
- 5:13 Stepped-up basis at death versus carryover basis for gifts
- 6:29 AMT triggers: private activity munis and ISO exercise
- 7:15 IRMAA two-year lookback and Roth conversion premiums
- 7:42 Rapid-fire exam recap
What this video covers
- How short-term and long-term capital gains are taxed differently, and why the net investment income tax (NIIT) adds 3.8% on top for high earners
- The $3,000 annual limit on net capital losses against ordinary income versus the unlimited offset against capital gains, plus indefinite loss carryforward rules
- How the wash sale rule disallows losses on substantially identical securities repurchased within 30 days, and why the deferred loss gets added to replacement basis
- The two requirements for qualified dividend treatment, and why REIT dividends are always taxed as ordinary income
- How progressive marginal tax brackets work, and why a taxpayer's effective rate is always lower than their marginal rate
- Why inheritance receives stepped-up fair market value (FMV) basis that deletes embedded gains, while gifts pass along the donor's original carryover basis
- The two classic AMT triggers, private activity municipal bonds and incentive stock options (ISOs), plus the two-year IRMAA lookback that turns a Roth conversion into higher Medicare premiums later
Read the full lesson, free
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