I have capital gain on my TFSA that I must report on 3520a. (PartII).
On what line do I report those capital gains on my 1040? As they are long term cap gains, is there a different tax rate? Do I have to fill out Sched D?
Thanks! (I'm closing the TFSA ASAP:)
TFSA Capital Gains on 3520a and 1040
Moderator: Mark T Serbinski CA CPA
I have the same question.
I called the international IRS phone number and the response I got was to include the capital gains on line 13.
In my case, we are filing jointly, my wife has some capital losses from Schedule D, and I have a gain on the 3520-a, so I put the sum of these two numbers on line 13.
I don't know if this is correct but it seems to follow the intent of the 3520-a statement "Report each Item on the proper form or schedule of your tax return"
The problem I had with putting the capital gain on Schedule D is that Schedule D is broken down into Short-term and Long-term gains. The 3520-a doesn't seem to care if these gains are short-term nor long-term and just lumps them together which is why I think it needs to be added in on line 13 of the 1040.
I called the international IRS phone number and the response I got was to include the capital gains on line 13.
In my case, we are filing jointly, my wife has some capital losses from Schedule D, and I have a gain on the 3520-a, so I put the sum of these two numbers on line 13.
I don't know if this is correct but it seems to follow the intent of the 3520-a statement "Report each Item on the proper form or schedule of your tax return"
The problem I had with putting the capital gain on Schedule D is that Schedule D is broken down into Short-term and Long-term gains. The 3520-a doesn't seem to care if these gains are short-term nor long-term and just lumps them together which is why I think it needs to be added in on line 13 of the 1040.