my accountant says i must calculate basis - do i need to?

USA Discussion in 'Individuals' started by stp86, Oct 3, 2018.

  1. stp86


    Oct 3, 2018
    Likes Received:
    my accountant says that basis must always be calculated for each and every capital gain, no matter what.

    is this right?

    i have a very limited scenario where i want to submit the full amount of a small sale, no capital gain exclusion.

    also, does it matter if you itemize or not?

    any thoughts on this would be great.

    stp86, Oct 3, 2018
    1. Advertisements

  2. stp86

    Tempe Tony

    Oct 27, 2016
    Likes Received:
    Well no, one does not ALWAYS have to calculate basis in regards to reporting capital gains on one's tax return.

    Reason: depends on what asset you are talking about. For example selling stock in a standard brokerage account you would....however selling stock in an IRA, I never need to since I'm under 70 and not taking required distributions.

    Also, if one realizes a gain on a home sale, SOMETIMES you need to report that on a tax return, other times the gain is free of taxes. So bottom line basis is not something one ALWAYS needs to calculate for tax returns.

    And lastly, for the gains that DO IMPACT tax returns (i.e., gains that are taxed), I do not believe it matters if you itemize. As far as I know, they are not related, since recording gains is added to AGI before you get the section regarding itemization.

    Just my 2 cents though, I'm not a certified tax preparer, however am degreed in accounting.
    Tempe Tony, Nov 23, 2018
    1. Advertisements

Ask a Question

Want to reply to this thread or ask your own question?

You'll need to choose a username for the site, which only take a couple of moments (here). After that, you can post your question and our members will help you out.