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Fundamentals of Capital Gains: Identifying Section 1231, 1245 and 1250 Gains, 0% Bracket and Form 4797

Note: CLE credit is not offered on this program

Recording of a 110-minute CPE webinar with Q&A

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Conducted on Tuesday, January 21, 2020

Recorded event now available

or call 1-800-926-7926

This course will cover the more challenging areas of capital gains tax for new staff and experienced staff. Our panel will review depreciation recapture, the categories of capital gains, the investment interest election, and other troublesome areas of capital gains taxation with a focus on reducing tax on sales.


Capital gains taxation is one of the more complex, most often litigated areas of taxation. Most taxpayers want to take advantage of the lowest possible capital gains rate. However, capital gains tax rates are graduated, similar to regular tax rates. Practitioners and taxpayers are sometimes pleasantly surprised, or shocked, to discover they can take advantage of a 0% capital gains tax rate via careful planning or luck. In 2019, married taxpayers filing joint returns can avoid capital gains when taxable income is under $78,750.

Electing to tax-qualified dividends and long-term capital gains at ordinary rates can free-up investment interest carryforwards. Making this election often results in substantial current tax savings for taxpayers, but when should the election be made, and should the deduction be maximized?

Perhaps the most perplexing area of capital gains taxation is the categorical taxation of the sales under Sections 1250, 1245, and 1231. Separating a sale appropriately can be a daunting task. Planning for 1245 and 1250 recapture, categorizing taxable gains appropriately, and being mindful of the 1231 five-year lookback are all necessary steps to calculate the tax effect of gains on the disposition of assets.

Listen as our panel of experts reviews the most complex areas of capital gains tax, including taking advantage of the 0% bracket, calculating recapture, the investment interest election, and Form 4797 reporting of these transactions.



  1. Capital gains: an overview
  2. Distinguishing and calculating Section 1231, 1245, and 1250 gains
  3. Taking advantage of the 0% capital gains bracket
  4. Electing to maximize the investment interest deduction
  5. Section 1231 lookback
  6. Other capital gains strategies


The panel will review these and other vital issues:

  • Distinguishing between Section 1231, 1245, and 1250 gains
  • Electing to maximize the investment interest expense deduction
  • Completing Form 4797 for capital gains and losses
  • Utilizing the 0% capital gains bracket


Adams, Riley
Riley Adams, CPA

Senior Financial Analyst

Mr. Adams has more than eight years of experience in financial planning and analysis, investor relations, strategic...  |  Read More

Plaks, Michael
Michael Plaks

Enrolled Agent
REI Tax Firm

Mr. Plaks has been in private practice since 1996, providing tax preparation, consulting, and IRS representation...  |  Read More

Polin, Dawn
Dawn Polin, CPA
Senior Manager
Cherry Bekaert

Ms. Polin focuses primarily on cost segregation studies, energy studies, and recently implemented tangible property...  |  Read More

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