Cap gains question

[Jon Lapham]

Steve Wallace wrote:
> On Thu, Jul 17, 2003 at 12:12:37PM -0300, Jon Lapham wrote:
> 
>>So, short term cap gains are considered regular income in terms of
>>taxes, while long term gets the cap gains tax break?
> 
> 
> Not exactly, two different concepts.  Although I believe in the US,
> short term gains are *currently* subject to the same tax rate as
> ordinary income, they are reported separately on Schedule D and are
> subject to different tax rules and treatment.  Therefore short term
> gains from sales need to be reported seperately from other sources of
> income.
> 

huh, interesting.  So, really, for investments, we should have an income 
account structure like this:

-Income
    -Unrealized Gains
    -Realized Gains (short term)
    -Realized Gains (long term)

Where the definitions of long and short term would vary from country to 
country.

-- 

-**-*-*---*-*---*-*---*-----*-*-----*---*-*---*-----*-----*-*-----*---
  Jon Lapham  <lapham at extracta.com.br>          Rio de Janeiro, Brasil
  Work: Extracta Moléculas Naturais SA     http://www.extracta.com.br/
  Web: http://www.jandr.org/
***-*--*----*-------*------------*--------------------*---------------