Income Tax Fundamentals: Individual

What this video covers

• The exact holding period that separates short-term capital gains (taxed up to 37%) from long-term capital gains (0%, 15%, or 20%), and why "more than 12 months" means a year and a day
• How the $3,000 annual limit on net capital losses applies only to ordinary income, with unlimited offset against capital gains and indefinite carryforward of excess losses
• The 61-day wash sale window, what triggers it, and why buying a replacement security in an individual retirement account (IRA) permanently disallows the loss instead of deferring it
• The strict 60-day holding period within the 121-day window required for qualified dividend treatment, and how this differs from the capital gains holding period
• Why gifted assets use carryover basis while inherited assets receive stepped-up basis to fair market value at death, plus the dual basis trap for loss property
• How the alternative minimum tax (AMT) recalculates liability by adding back preference items such as incentive stock option (ISO) exercise spreads and private activity bond interest
• The tax timing of traditional versus Roth IRA contributions and distributions, required minimum distribution (RMD) rules, and the 10% early withdrawal penalty