Section 1202 Gain – Small Business Stocks
Your mutual fund company might send you a Form 1099-DIV. This could show an amount in Box 2c (Section 1202 gain). If so, the mutual fund you sold qualified as small-business stock. If this applies, you might be able to exclude up to 100% of the capital gain from your income. You can do this if you held the stock for more than five years. You’re taxed on the remaining capital gain at whichever rate is lower:
- Your marginal tax rate
The amount of gain you can exclude is figured by the date you got the stock:
- 50% — Jan. 1, 2015 and later
- 100% — Sept. 28, 2010, through Dec. 31, 2014
- 75% — Feb. 18, 2009, through Sept. 27, 2010
- 50% — Aug. 11, 1993, through Feb. 17, 2009
Your mutual fund company will send you a statement with the information you need to report this gain.
What is Cryptocurrency? Bitcoin, Litecoin, and the like leave many wondering how to classify this new form of investment. Find the answer at H&R Block.
Have you recently earned Bitcoin income from rising stock value? Explore the rules surrounding cryptocurrency-sourced capital gains and losses with H&R Block.
Congratulations on the Bonus! Learm more about the tax rate at H&R Block - whether you receive a holiday or cash bonus, it will apply to you.
If you are selling items at a farmer's market, learn how to file your taxes with H&R Block. From cash income to bartering, these tax tips will help.