Method of acquisition

The designation of long-term gains or short-term gains impact the way in which capital gains are taxed short-term gains are taxed as ordinary income tax at same rate as the income such as wages and interest long-term gains are taxed at their own preferential capital gains tax rate

Watch sale occur when taxpayer dispose of stock at a loss and subsequently acquires substantially the identical stock within a 30-day window.

When you inherit stock or other property

Totally worthless stock

Offered to employees as part of compensation, RSU- type of compensation in which each RSU- represent the right of the employee to take ownership of stock on a preset future date.

Grants employees right to purchase stock at predetermined price, which can be below market value.

Companies often reward workers with ownership in the form of stock.

Advantages of having your own business.