Q: I thought I read somewhere that you do not have to report capital gains that are less than some threshold amount, like say $50, but when I search I find nothing about this. Is it true? If true, would that threshold be per sale or in aggregate for the year? Because I have several transactions with DLR for currency exchange which result in very minor gains/losses. A bit tedious to report especially if just pennies are involved. Also, when reporting, I suppose one has to keep the 30-day investment loss rule in mind? Thanks.
5i Research Answer:
We think the $50 references that some mutual funds and dividends do not send out tax forms for amounts below $50. But the income is still taxable and should be reported.This applies to capital gains as well. Yes on the superficial loss issue as well.