First review this article which looks at longterm and shortt

First, review this article which looks at long-term and short-term capital gains. http://taxes.about.com/video/What-Are-Long-Term-and-Short-Term-Capital-Gains-Tax-Rates-.htm

Then, identify capital assets that exist in your current, past or future job. How does the tax treatment differ on a long-term versus short-term capital gain? What is the tax treatment of net capital losses, including any unused capital losses in a particular year?

Solution

Capital asset that exist

On a business\'s balance sheet, capital assets are represented by the property, plant and equipment figure. Examples include land, buildings and machinery.

Tax treatment

Long term gain

Generally long term gain are taxable at lower rate than short term gain , the long term capital gain will arise when capital asset which have been hold for 1 year or more is consider as long term gain,

Long term gain is taxable at 15%, and sometimes it will exempt when security transaction tax have been paid on it,

Short term gain,

When capital which have been used for less than 1 year have been sold then gain arise from such sale is consider as short term gain,

The short term gain is taxable at regular income

E.g if individual has short term gain then such gain at regular slab rate

Capital loss treatment

Capital loss would be first set off against gain arise in same head and remaining loss can be allowed to carried for indefinite years for set off against gain under same,

Unused capital loss

Such loss can be carried forward for indefinate period, provided in future capital gain should have for such loss set off..