Save Capital Gains Tax

RSS Feed Homepage

Articles: 1, 2, 3, 4

The Document Everyone Should Have on File
2009-05-15 23:23:00
While waiting for the credit markets to loosen up so my clients can actually sell their real estate and businesses, I have been spending a lot of time with veterans, widows and their families.As I have mentioned before, many who are now in need of daily medical and personal assistance can qualify for the Veterans Improved Pension benefit with Aid and Attendance Add-on. It is a life saver for those whose savings are being eaten up by care bills and also those adult children caregivers who perhaps have quit a job to care for Mom or Dad and now find themselves in a financial bind.Perhaps one of the major road blocks I have consistently seen is an elderly person with dementia or Alzheimer disease, or perhaps now disabled from a stroke who did not sign over durable power of attorney to someone prior to becoming physically or medically disabled. Now it is too late and a family member must go to court to get custodianship and ask permission from the court before making financial or medical...
More About: File , Document

Answers to Most Common Questions from VA Benefit Post
2009-04-14 03:09:00
I?ve been receiving many questions from my last post, so I am going to attempt to answer the most common questions. If you have others, please contact me directly.Q: What exactly is this pension and who qualifies?A: Here are the mandatory qualifications for what is known as the Veterans Improved Pension Benefit . This is a non-service connected pension benefit with additional add-ons of ?housebound? and ?aid and attendance? benefits available to a veteran or their widow(er) who requires the assistance of another person in order to avoid the hazards of his or her daily environment. This is not to be confused with a service related disability pension which falls under a different program. The veteran must also have:a. 90 days of consecutive active duty service, one of which was during wartime.b. Any discharge other then a dishonorable dischargec. Be 100% disabled or at least age 65d. There are income and asset limitations which can be discussed individuallyQ: How ...
More About: Questions , Post , Answers , Common

Important Info for Veterans Over 65 Using Assisted Living Services
2009-04-08 01:51:00
In doing research for my own family member, I came across extremely valuable information for US Veterans that might make a huge financial difference in their lives and the lives of their spouses and children.If you are, or know of, a Veteran or Widow(er) of a Veteran over age 65 in need of medical assistance for daily living, whether at home, in an Assisted Living Facility or in a Nursing Facility, you need to know if you (or they) qualify for the Veterans NSC Improved Pension Benefit.http://www.gbausa.org/pstraubThis assistance is a little known benefit of tax free pension income from our Government to Veterans who served during any period of war, even if they did not go into battle and it can truly be a life saver.I recently went through a training program to educate people on this benefit and have set up a web page with additional information and resources. I also have a toll free phone line for questions and contact.http://www.gbausa.org/pstraubIt doesn?t matter which state you ...
More About: Services , Info

Good Intentions, Bad Tax Consequences
2009-03-31 23:32:00
As we step in to take care of aging friends, parents and grandparents, we can make choices which seem like a good idea at the time, but turn out to be not so desirable when it comes time to sell.I?ve gotten several questions lately about the tax consequences after selling a home that was either gifted or sold for a very low price prior to death, typically to a child of a sick or ailing relative.The idea was that the owner was either too sick or unable to take care of their residence and a child stepped into getting control of the assets so they could make the financial decisions to care for the seller.Since they didn?t want to pay the seller out of pocket, the property was gifted with a quit claim or grant deed or sold on paper for $1. or other low amount. No taxes were due, and now the responsible party was in control. Note: this doesn?t work for planning for state or federal aid unless done at least 5 years prior to need or request.Then, once the parent or seller is taken care of ...
More About: Good , Consequences

Simply Wealth On Hiatus
2009-03-24 20:57:00
I?ve really enjoyed being the host of Simply Wealth on WebTalkRadio over the past 15 months, and wanted to let you know I?m taking a break to concentrate on exciting new ventures.Anyone who has hosted a weekly radio show will appreciate the amount of time and effort that goes into preparing, taping, editing, uploading, etc. I developed a regular following of about 30K listeners on a weekly basis and appreciate all who faithfully tuned in.I will keep my radio email open for any general questions on financial matters and try to keep up with replying as time allows. This address is SimplyWealthShow@gmail.com . You can also listen to my archived shows at www.savegains.com by clicking on the link to ?Listen to My Radio Show Simply Wealth?.You can also follow me on Twitter. My name there is @savegainstax . This is a whole new concept for me which allows short updates of new developments and interesting tidbits.While waiting for the credit markets to unfreeze, stay tuned for info on some ...
More About: Hiatus

Safety Has Once Again Risen To the Forefront- Thank Goodness!
2009-03-19 00:08:00
It was less than a year ago that clients were willing to forsake safety and a steady return for the chance to ?make it big? with gas and oil, REITs, real estate and other volatile investments.They decided to pay all their capital gains tax and depreciation recapture up front so they could invest their hard earned proceeds ? often with the help of money managers- to not only get back where they started from before taxes, but to soar ahead of a measly 6% return and tax deferral.Why put money into principle protected products that don?t lose in bad markets and gain only a portion of the growth that stock indexes make in good times? How boring!Do you know anyone who has lost a LOT of money in the market this year, in gas and oil, in real estate, in a business? I do. I have taken a beating in my own retirement plans.The people I know who are the happiest are the ones that opted for the boring equity indexed annuity and who have experienced zero loss and an income stream that pays the mon...
More About: Safety , Goodness

A Sad, But All Too Common Story
2009-03-12 18:33:00
In past years, the most common situation was people nearing retirement often came to a decision to sell real estate or businesses which had appreciated in value, had a low cost basis and little debt. This left a big gain and a huge tax bill.There are still many great choices for deferring or spreading out taxes over long periods of time and setting up a solid income stream for retirement if this is the case.With this crazy economy, more and more upside down situations are becoming all too common place. Here is one scenario which has many variations, but the same dire consequences.Phil bought a commercial property 16 years ago for 500K. As it appreciated in value, he took out equity to make other investments, pay bills and buy a few luxuries. His debt increased to 800 as the property value reached 1 million.Then the market came tumbling down and the property is now worth 750K and he wants to sell. He will only clear about 700K after normal costs of sale. He called to ask how he can ...
More About: Story , Common

How Bill Saved $240,981 Using a Self Directed Installment Sale
2009-03-04 02:32:00
Bill owned an investment property that had appreciated a lot in value. He had depreciated it completely over the years.Bill?s adjusted cost basis was $0. His straight line depreciation was 200K. The selling price after closing costs was 1.2 million. His gain is 1.2 million and of that 200K is taxed at depreciation recapture rates, and 1 million is taxed as capital gain.Bill is 62 years old and lives in Utah where capital gains are taxed at 5%.Bill did not want to do a 1031 exchange and wanted the maximum amount of proceeds to be kept in his family. A Self Directed Installment Sale was his vehicle of choice.If Bill had sold and paid all taxes upfront, he would have owed about 264K in taxes.By structuring the sale correctly, Bill chose a 25 year payout so it would most likely last him the rest of his life. He is single and has one son who is financially sound.By spreading out the repayment of capital gains and depreciation recapture over 25 years, Bill was able to recognize a savings ...
More About: Bill

How Painful Has This Year Been For You?
2009-02-25 02:14:00
I don?t know about you, but this past year has been a real ?bear? in more ways than one!Not long ago, the calls and emails I received were primarily from relatively happy individuals who had found a buyer for their appreciated real estate, businesses, etc. and were looking to minimize their capital gains taxes.Fast forward to today. More and more calls and emails are from people whohave been trying to sell their assets for a very long time, and few are having any success. Here are the most common dilemmas: They are getting low-balled on the offers that do come in and are determined to wait for the values to go back up They are getting close to losing the properties because tenants have pulled out, they are behind on mortgage payments, or buyers offers are dependent on the sale of another property The most common is that buyers, even though they are supposedly prequalified for loans, are unable to get the loans, and this is happening right up to the day of ...
More About: Year

Tips For Getting Through Tough Times #2
2009-02-10 21:25:00
The last email talked about the possibility of getting a cash offer for a life insurance contract that was no longer needed, expiring, and/or affordable.Here is another potential source of lump sum value for an annuity contract in the payout phase. Potential individuals who may benefit are thoseWhose payments are not providing enough to live onWho are receiving payments tied to an extremely low interest rateWhose health has changed and the need for additional money is greatWho have inherited an annuity and are forced to take the balance as a payment stream when a lump sum is more valuable to them.If you or anyone you know is in this situation please email me or give me a call. I can let you know if a company is willing to make an offer for consideration.Not all policies will qualify, but if yours does it may mean that you have the ability to access money you did not think you had and cover whatever expenses are at hand. There is no obligation to accept any offer made.If you have any...
More About: Tips , Times , Tough

Tips to Getting Through Tough Times #1
2009-02-05 01:45:00
I don?t have to tell you that our current economic turmoil is affecting our lives in ways it didn?t seem possible even one year ago.Many of the emails and questionnaires I receive on a regular basis are relating to people selling assets at fire sale prices, being foreclosed on, and being stuck in perpetual hold mode due to the lack of credit available to potential buyers.Worse yet, property values continue to decline, as do assets in stocks, IRAs, variable annuities, life contracts, etc.The next series of emails will be focused on finding potential sources of income from assets you may own but may be unaware they have additional value.Even if these options do not apply to you, you may know of someone who can benefit and share this information with them. We are all in this situation together.First is potential value in a life insurance policy that could provide a substantial lump sum payment in times of need.If you or someone you know over age 65 is considering dropping or surrenderi...
More About: Tips , Times , Tough

TIC Properties in Today's Real Estate Market
2009-01-13 00:06:00
We all know that real estate goes up and down in value. Just like stocks, more years are up than down but occasionally we get a market such as the one we are in where it seems all investments are taking a big hit.So, what is the state of the tenant in common market today? It depends.It depends on what type of property you own, where it is located, and when you purchased it. Here are some of the factors involved.Some of the most common types of tenant in common properties consist of shopping centers, office buildings, medical buildings, senior and assisted living and apartments. Most are at least 95% rented when originally purchased.For years, when real estate values were climbing and the economy going strong, most properties met their expectations and paid out the proceeds as planned.Now look at what is happening nationwide. Retail businesses are closing and leases are being broken. Large and small service businesses are also shutting down due to the economy. Some parts of the count...
More About: Estate , Real Estate , Real Estate Market , Market , Real

Happy New Year 2009
2008-12-31 22:06:00
Well, another year down and what a year it was! Unfortunately, for many not such a good year financially.Retirement accounts, savings, home values are pretty much down across the board. Layoffs are compounding and unless we can get people back to work, more will lose their homes, savings and most likely benefits such as health insurance coverage. None of this is good news and will start 2009 on a down note.On the upside, we have a new president coming into office, and he has hopefully engaged the right brain power to begin to turn things around over the coming months.On the upside, if you have a steady job and good credit, opportunities abound with the ability to refinance at a low rate and buy stocks and property at sale prices. If only the majority of people fit into this bracket!So, my wishes for the coming year are job creations, a consumer confidence rebound, health care reform and not an excessive amount of tax increases. Also, less war worldwide would be a very welcome change...
More About: New Year , Happy , Happy New Year , Year

What Will Obama Do With Capital Gains Taxes?
2008-12-18 00:43:00
Dow Jones Newswire reports that President-elect Obama 's plans include:Exempting seniors earning less than $50,000 from income tax.Increase the top two marginal tax rates from their current levels of 33 percent and 35 percent to 36 percent and 39.6 percent, respectively. Based on 2009 income thresholds, that would result in a tax increase on singles making $171,550 or more and married couples making $208,850 or more.Taxpayers in those brackets also face increased taxes because President-elect Obama plans to restore phase-outs of personal exemptions and itemized deductions. This means that high-earners would not only face higher tax rates, but they would also lose some or all of their personal exemptions and itemized deductions.Obama has also proposed raising the tax rate on capital gains income from 15 percent to 20 percent for single taxpayers making more than $200,000 and for married couples earning more than $250,000 annually.Of course, nothing is set in stone yet and some of the...
More About: Taxes , Capital , Capital Gains

If It Sound Too Good To Be True...
2008-12-13 03:28:00
If it sounds too good to be true? yep, it usually is.You?ve heard this saying time and time again, but it is not always easy to know when you are simply following existing guidelines to save money and grow your profits, or when you are tempted to ?go for the bleachers? and fall prey to a party who promises you the moon but delivers nothing but heartache. I always go by the motto that it is better to under promise and over deliver than vice versa.Even wealthy investors are easily misled when dealing with the mask of seemingly successful individuals whose motives often come down to personal greed and arrogance but initially appear to offer a brass ring.I?m not sure any of us saw the downfall coming of major banks, investment firms and large corporations. It seems even their leadership was mislead into believing some of these complicated investment vehicles were safe and prudent.However, there are many red flags to look out for that have held true for years. Here are just a few at the...
More About: Sound , True , Good

Year End Tax Planning
2008-12-03 01:54:00
December always brings its share of stresses along with the enjoyment of the holiday season. This year has not been a banner year for many families so the holidays may not be as much fun as in previous years.Year end also deserves a close look for tax planning. Even though taxes are due in April, whatever balancing doesn?t get done in December sets the tax consequences for the previous year.Here are just a few things to consider:If you had gains should you look to sell assets at a loss to minimize the taxes? If it is stocks, you can always buy the loser shares back after 30 days if you feel they will go up in value again soon.If you had losses, should you look to sell something you?ve been putting off at a gain? This year watch for exceptions to withdrawal from retirement accounts that may pass Congress at the last minute.If you had gains, can you add extra to existing retirement accounts or open new ones to reduce your income?If you are planning to gift children or grandchildren ma...
More About: Planning

Thanksgiving Wishes
2008-11-26 23:32:00
Happy Thanksgiving ! Just wanted to send a quick note to let you know how thankful I am for all my subscribers. In turbulent times such as these, I know I have to stop and count my blessings for the things I do have.I have been a little remiss on sending updates on capital gains tax issues and on what may be changing in the next year or soon after. A lot is still up in the air as the feds try and stabilize the economy and the credit markets but I?ll keep you informed.The best spot to keep abreast is to listen to my weekly radio program Simply Wealth on www.webtalkradio.net. I spend a lot of time putting together each program to reflect what is happening week by week and provide information and education that you can use. All you need is 30 minutes and a computer with speakers to listen any time of the day or night.I?m also always looking for topics which are important to you, so send me an email if you have something you?d like me to discuss or even a guest you?d like to hear intervi...
More About: Wishes

Making the Tax Bill More Bearable When Selling A Business - Option 2
2008-07-07 23:38:00
So, you?re selling your business and have received the shock from your CPA of how much of the proceeds will be passing directly to Uncle Sam if you don?t implement a tax saving strategy prior to sale.Depending on the type of business you are selling and where it is located, this amount could be between 15-50% and is usually on the higher end of that range.In the last article, the Self Directed Installment Sale was outlined and now another option will be presented. There are so many variables involved with each sale, there is never any one size fits all ?best? option. It is important to work with someone familiar with all options available, so each can be compared and considered for your unique circumstance.If you have the need for an immediate tax deduction, perhaps to offset other gains or simply in exchange for contributing to a non-profit close to your heart, consider a Charitable Installment Bargain Sale (CIBS). Don?t confuse this with a Charitable Remainder Trust (CRT) because ...
More About: Business , Selling , Bill

Making the Tax Bill More Bearable When Selling a Business - Option 1
2008-07-02 19:06:00
Hopefully, before selling a business, you meet with a CPA or tax accountant and get an estimate on how much of your proceeds will be going directly to Uncle Sam if you pay them in a lump sum at time of sale. You don?t want to save this surprise for after all is said and done, because not only will it most likely be a shock, but you will have given up your chance to do anything about it.Planning is everything. For this article I will assume you are not doing a 1031 business exchange, that is selling your business and buying another similar business taking into consideration all the IRS guidelines and timelines. It?s pretty rare to see this, but it can defer all of your capital gains tax if done correctly.Depending on how the business is sold, the gains may be taxed as long term capital gain, short term capital gain, ordinary income, etc. and if you are selling an asset in a C-Corp you may face double taxation. So, the idea is to minimize your tax bill and maximize your proceeds no ma...
More About: Business , Selling , Bill

How To Get the Greatest Return on the Sale of Your Business
2008-06-26 17:05:00
If you are thinking about selling, or already have your business up for sale, you don?t want to make any crucial mistakes that will cost you big time. Most business owners only sell one business in their lifetime. The results of this sale have a major impact on the financial future of the family. You may be an expert in business development, but totally in the dark about most aspects of the best way to sell. A colleague of mine, Dave Kauppi makes his living helping business owners get the maximum return from their business sales. He has extensive knowledge of the mistakes made by owners attempting to handle the sales process without professional help and can make sure your business is not a victim of unintended financial disaster. Dave publishes the Exit Strategist Newsletter. It contains a wealth of useful advice to help guide you through your business sale. The subscription is complimentary and I urge you to sign up on his website. Go to www.midmarkcap.com/exit and start learn...
More About: Business , Sale , Return , Greatest

Selling Your Second or Vacation Home
2008-06-04 18:28:00
Almost everyone is affected by something happening within the economy today.Housing prices have taken a dive. Staples such as food and gas are significantly more expensive and still rising. Jobs are being cut throughout many sectors such as construction, education, retail, restaurant, manufacturing, etc. So, the first thing we find ourselves doing is looking to see what we can do without.I?ve been receiving a lot of calls and emails regarding the sale of second or vacation homes. Once a nice luxury and place to retreat, they are more and more becoming a financial strain, or at least an unnecessary part of life for many.When selling a vacation or second home, you can?t enjoy the personal exclusion given to primary residences, nor can you qualify for a 1031 exchange available for investment property. Thus, saving on taxes becomes an even more important issue.If you need to maximize your income, a Self Directed Installment Sale could be an excellent choice. It will basically allow you ...
More About: Selling , Home , Vacation

Exciting New Concept in Capital Gains Tax Planning
2008-05-15 03:51:00
I'm very excited about a project I have been working on for quite a while that is coming to fruition. I hope to have it available by the beginning of June.It is a twist on the Charitable Installment Bargain Sale and I hope having this option will be appealing to a lot of people who want to make the world a better place for a deserving group of people.I've been listening to clients over the last year and one half tell me what they liked and didn't like about the current foundation offering this product.The three most common hesitations were dealing with a new and untested foundation, not being able to choose to send a part of the donation to their favorite charity, and wondering if the large tax deduction would hold up under IRS scrutiny.Well, the new program I am helping to launch addresses all of those concerns and will help a cause almost every American will want to contribute to if it fits their overall objectives in selling their asset.I know this is a tease, but I am very pr...
More About: Planning , Concept , Capital , Capital Gains , Capital Gains Tax

Tax Time is Over - It's Not Too Late To Plan for Next Year
2008-04-29 01:48:00
The last few weeks before taxes are due I field a lot of calls from desperate tax payers who sold an asset in the past tax year and now are faced with writing a huge lump sum check to the IRS.Most knew it was coming, but were not prepared for the amount their accountant just presented them with. It is often double or triple what they expected to pay. Some have no idea where the money will come from because they either spent the proceeds or re-invested into another asset.The worst news is that it is too late to do anything about it. The event took place in a previous tax calendar year, the proceeds were dispersed and no tax strategy was in place prior to their sale or at least prior to December 31.This same scenario takes place each and every year and the outcome doesn?t change. The time to start searching for ways to pay less in taxes is before the sale and not months after it has been completed. Human nature is to put things off until the absolute last minute of a deadline and then...
More About: Time , Late , Plan , Year

The Risk of Owning Securities
2008-04-11 01:39:00
Anyone that has been through a stock market downturn is familiar with the risks of owning stocks, mutual funds, unit investment trusts, Real Estate Investment Trusts, etc.When values are rising, we pat ourselves or our advisors on the back and congratulate ourselves for making a wise pick. We may even buy more.The true test of an investor comes when the market heads downwards. Then we second guess ourselves and/or our advisor and wonder if we made a big mistake.Sometimes, some event out of our control happens and that company we thought was as solid as a rock crumbles out of the blue (Think Bear Stearns, Enron, WorldCom, Tyco, etc.)Maybe we panic and sell at a loss. Then we curse ourselves for not acting sooner. Hindsight is indeed 20/20.Any seasoned investor knows that the stock markets go through cycles just like real estate and bonds. One should be in it for the long haul or be prepared to ride a roller coaster.You might think bonds can never lose value. This is not true.It depen...
More About: Risk , Securities

The Risk of Owning Annuities
2008-03-20 02:12:00
I?m not sure what you know about annuities, but I will tell you that a lot of insurance agents and registered representatives don?t know as much about the products they sell as they should.You might wonder how that can be, but if you truly knew the number of annuity products currently being offered by hundreds of companies it wouldn?t be hard to fathom.The other thing that makes annuities rather intimidating is that since each company?s products have different features and crediting methods they can rarely be compared side by side with much consistency.The popularity of one over another can actually be the strength of the company offering it and how effectively they market it. Some companies set themselves apart by being truly innovative and others simply get a product out there to have something to offer along with other products.Some agents are very knowledgeable and know their products inside out. They keep up on changes and take advantage of training seminars and company experts...
More About: Risk , Annuities

The Risk of Owning Real Estate
2008-03-20 00:20:00
Real Estate is an important part of anyone?s investment portfolio.Whether it is the house you reside in, a rental property, vacant land, or a commercial building, a good piece of real estate will almost always increase in value over time.That said, a number of factors can happen which can affect how much your property increases in value.Any time you buy a property that is less than desirable, you can lose money. Structural issues you may not be aware of, property in a declining neighborhood, land in a flood zone, natural disasters such as fire, flood, hurricane, earthquake, zoning issues, tax issues, insurance issues, all play a part in the value and profitability of the property.Economic issues can also have a great effect and are much harder to predict and knowingly avoid.In 2008 times are tough. People are losing homes and jobs, property values are dropping, companies are going out of business or are seeing major declines in revenue, and a property may not sell as quickly as you?...
More About: Real Estate , Risk , Real

No Such Thing as No Risk
2008-03-20 00:13:00
We all would like guarantees that any investment we make will never lose money or value. The reality is that every investment has a certain amount of risk.Whether you are purchasing real estate, stocks, bonds, mutual funds, annuities, gold, or even certificates of deposit there is risk.The best you can do is evaluate what it is you are purchasing, be aware of the specific risks and potential rewards that asset has associated with it, know what if any recourse is available should something unexpected arise, and do not put all your eggs in the same basket.We all know the stock market goes up more than it goes down over extended periods of time. Buying good quality stocks of a diversified nature and holding them through both down and up cycles will almost always show long term profit.Real Estate has similar cycles. If you purchase a good quality property in good condition in a good area it will most likely increase in value over time.The comparative safety of a certificate of deposit h...
More About: Risk , Thing

Life Settlements and Capital Gains
2008-03-05 21:22:00
Do you meet the following criteria?*Age 65 or older*Have a Life Insurance Policy with a face amount of 250K or more*There has been a change in insurability since the policy was issued*Life expectancy of 15 years or lessIf so, a life settlement may be something to consider. A life settlement is the sale of a life insurance policy for more than the surrender value while living.Here are some circumstances that may lend themselves to a life settlement.*You have a policy that is underperforming and you can no longer afford the premiums to keep it in force.*You had the policy to protect a spouse who has passed away.*You have a key employee life policy and that employee no longer is in your employ.*You have the ability to replace this policy for a policy with the same death benefit and lower premiums.*The policy was to cover estate tax which is no longer an issue.*You are considering surrendering the policy or letting a convertible term policy lapse for any reason.Before you let a policy l...
More About: Capital , Capital Gains , Settlements

Having Trouble Selling Your Property? How About Auction?
2008-03-05 00:39:00
The biggest thing affecting my clients over the last year or so is that real estate is simply not selling the way it used to.I can?t even count the number of times that a sale is all wrapped up after months of waiting, and at the last minute it falls out of escrow.Most times it is due to the financing of the buyer not coming through as planned. In today?s market even ?preapprovals? don?t seem to hold a lot of weight.So although the buyer may lose a deposit, the sale doesn?t happen and the property goes back on the market. It may sit there for any number of months and sometimes the seller is forced to rent it out again just to keep afloat.If your property is just sitting there with no bites, or you need to sell it sooner rather than later, you might consider putting it up for sale through auction.I recently devoted a weekly radio show to this topic, and if the idea appeals to you take a listen.An archive of all of the episodes of ?Simply Wealth? is now available on the following webs...
More About: Selling , Property , Auction

When Is a Year and a Day not a Long Term Gain?
2008-02-29 22:54:00
I read an interesting article today and had to share.It?s one of those quirky things that you would probably not ever think about until you got caught in a really awful situation.By now you know that long term capital gain is taxed at a lower rate than ordinary income, so if you hold an asset for longer than one year you receive a tax advantage when you sell.You actually must hold the asset for at least a year and a day to qualify. So, something purchased on March 10 of one year could be sold on March 11 of the following tax year and receive long term capital gains treatment.So when does this rule of thumb not apply? Leap year, of course.If you buy shares on February 28 in a year preceding a leap year, and sell them on the following February 29, your gain or loss is short-term, not long-term.This surprising outcome is the result of a technicality. Your holding period for an asset is deemed to begin on the day after the date of purchase. That's why you can't get a long-term gain wh...
More About: Long , Year , Term