Welcome Guest. Register Now!  


For 2014 Tax Tips For Year 2014.


Reply
 
LinkBack Thread Tools Search this Thread Display Modes
  #1 (permalink)  
Old 11-19-2014, 11:51 AM
Junior Member
 
Join Date: Oct 2014
Posts: 2
unearned income

hello, can someone please help me understand what is meant by unearned income, how we can report it, is there any deduction applicable to them. thanks.



Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!Reddit! stumble!bookmark in google!Share on Facebook!
Reply With Quote
  #2 (permalink)  
Old 11-19-2014, 03:47 PM
Moderator
 
Join Date: Oct 2010
Posts: 5,258
Quote:
Originally Posted by ahmedmo View Post
#1;
hello, can someone please help me understand what is meant by unearned income,



#2;how we can report it, is there any deduction applicable to them. thanks.
#1;Unearned income is income which is not from your wages, salaries, tips, or self-employment business income. Unearned income include income from capital gains, Social Security, child support and interest/dividend income. Some unearned income, such as Social Security, is non-taxable unless combined with other income, while income like capital gains is always taxable income.



#2;you need to report your unearned income,i.e., capital gain on Sch D or form 8949 on 1040 line 13, or you need to report your dividend income on 1040 line 9a or etc. Your deductible short-term capital losses are those assets you own for one year or less. If you purchase the share of stock on oct. 20, 2010 and sell it on June 20, 2011, then you must treat it as a short-term loss. The significance is that these losses can offset any of your other short-term gains first, with the excess able to reduce your taxable long-term gains. If you have no other long-term gains, then you can deduct up to $3k of the loss per year against your other income until the loss is fully deducted. When you hold the stock for more than one year, then your loss is a long-term capital loss. You first net your long-term capital losses with any long-term capital gains. If these losses exceed the gains, then you can use the excess loss to reduce your taxable short-term capital gains. If it exceeds your short-term capital gains, the losses are also deductible up to $3k per year with the remaining amounts deductible in future years subject to the same annual limitations.
Note; if you sell a home for less than the amount you had invested in it, you may incur a capital loss. Unfortunately, if you used the home as your primary residence called capitall asset, the loss isn't typically deductible on your federal income taxes. However, if you used the home for business purposes, you may be able to deduct a portion of the loss from your taxable income.



Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!Reddit! stumble!bookmark in google!Share on Facebook!
Reply With Quote
Ads
Reply



Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

vB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
child unearned income of 1340 dollars, in 2013 mmmonforte For 2013 5 03-29-2014 07:48 PM

Follow us on Facebook Follow us on Twitter Google Buzz Rss Feeds

» Categories
 
Individual
 » Income
 » IRA/Sep
 » Medical
 
Corporations
 » Payroll
 
Forum for CPAs
 
Financial Planning
 
 
 

» Recent Tax Q&A
No Threads to Display.