Equity Tax Treatment: Rapid Fire

What this video covers

• Why exactly 365 days is still short-term, and how the trade-date-plus-one rule determines long-term versus ordinary-income rates
• The two-step netting order: short-term versus short-term, long-term versus long-term, then the survivors against each other, with the larger amount dictating character
• Why the $3,000 net capital-loss cap against ordinary income applies only after all gain offsets, and why excess losses carry forward indefinitely
• How the 61-day wash-sale window disallows losses, why call options trigger it but industry peers do not, and why an IRA rebuy permanently vaporizes the deduction
• How stock splits, stock dividends, and convertible bond conversions adjust per-share cost basis without creating taxable events
• Why inherited securities use stepped-up fair market value (FMV) at death and are always long-term, versus the dual-basis trap for depreciated gifts sold at a loss
• Why FIFO is the default lot method, why it produces the largest gain in rising markets, and the 60-day-plus holding period required for qualified-dividend rates