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Income Tax Planning
Chapter 10: Basis Rules, Depreciation, and Asset Categorization/TAXATION OF CAPITAL ASSETS
Warren Academy Course SyllabusSyllabus Slides
Chapter Study Session

Chapter 10: Basis Rules, Depreciation, and Asset Categorization

TAXATION OF CAPITAL ASSETS

01.Core Concepts

Long-term gains generate lower tax rates than ordinary income tax rates: • 0% • 15% • 20% • 25% for unrecaptured Section1250 depreciation • 28% for collectibles Net losses are limited: • $3,000 maximum (against other income) per year Income Ordinary Portfolio Passive ($3,000)