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Learning, Sharing, and Teaching => Taxes => Topic started by: the barefoot badger on March 15, 2019, 12:01:16 PM

Title: De minimus rules for short term holdings?
Post by: the barefoot badger on March 15, 2019, 12:01:16 PM
Scenario:  I purchase a $1000 bond for $800.  Three months later, I sell it for $900.  Now I know I'm on the hook for $100 in short term cap gains, but what is the de minimus situation?  Do I owe 25% of a year's de minimus tax?  Do I owe nothing?  Do I owe the full de minimus for the year?  Do I owe the full de minimus for the whole difference between the original purchase and the face value?  My intuition is that I'd owe nothing because I didn't actually see any of the $800-$1000 ($200) profit I'd have realized at maturity (well I did, but that was short term cap gain that I've already paid tax on), but that would be too convenient, wouldn't it.  ;)