Part 1 — Individuals·Capital Gains

Chapter 5 — Capital Gains and Property Transactions

*Exam weight: HIGH*

| File | Topic | |---|---| | Chapter 05 - Capital Gains and Property/5.1-capital-gains-basics.md | Capital Gains, Losses, and Netting | | Chapter 05 - Capital Gains and Property/5.2-section-121-home-sale.md | Section 121 Home Sale Exclusion |

Key concepts: Capital vs. non-capital assets, short-term (≤12 months) vs. long-term (>12 months), LTCG rates (0%/15%/20%), netting procedure, $3,000 annual loss limit and carryforward, wash sale (61-day window), gifted property dual basis, inherited property (stepped-up basis, always LT), §121 ($250K/$500K exclusion, 2-year ownership and use tests, partial exclusion).

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