Section 1221: Capital Asset Defined：
   All property is a capital asset 除了：
  1. 存货
2. Depreciable property and real property used in T/B
3. Copyrights; literary, musical or artistic compositions; letters or memoranda。这些如果是自己创作的或别人赠送的（basis carryover）就不属于capital assets。若是自己花钱买的就属于自己的capital asset。
4. 交易中的应收账款
Short Term:  持有时间小于或等于12个月是short term。 作为 ordinary income 标准收税。
Gains on sale or disposition of short-term capital assets.  (Net remaining losses are deducted from ordinary income up to $3,000 per year or $1,500 for MFS.)

Long Term:  大于 12 months; taxed at either 28%, 25%, 20%, or 15% (0% for TPs in 10% or 15% bracket)*
*For 2013,  a new  20% rate applies to TPs in the highest tax bracket of 39.6% , while extending the 15% and 0% rate under the American Taxpayer Relief Act.
        28%         Long-term gains on：
v        Collectibles (ex., coins,stamps, & art work)
v        Qualified Small Business Stock
v        Self-Created Musical Works (TIPRA)
        25%Long-term gains on real estate sales or dispositions, including recapture
        15%或者0%（或20%）Other gains on sales or dispositions of long-term capital assets

Netting of CG & L for Individuals：
The three-step netting process：
1.分类， 看你的property属于哪类
2.计算每类里的是loss 还是 gain
3.
        short term loss 从long term gain 从28%开始抵消
        long term loss 从long term gain从28%开始抵消 有剩余的loss 可以抵消ordinary income 限制在3000之内， 若还有剩余可以carryover
        若longterm， shortterm 都loss, 则先抵消short term loss

Thrust of IRC Section 1231:“The Best of Both Worlds”意思就是两边都好。Gain will be  taxed as LONG-TERM Capital Gain and  Loss will be treated as Ordinary Loss.
应用于：长期Depreciable Assets  used in a T/B or for the production of income  
有一个special recapture of loss
若5年内 sec.1231的loss>gain, 所有的gain全部作为ordinary gain。 若loss< gain， 则比loss多出的gain才作为 capital gains tax rate

Unearned Income Medicare Contributions Tax
This 3.8% tax应用于这两个中少的那一个，
(i)  Net investment income, or
(ii) The excess of modified adjusted gross income (AGI) over the threshold amount ($200,000 for single individuals or heads of households; $250,000 for married couples filing a joint return and surviving spouses; and $125,000 for married couples filing separate returns).
Example: Dave and Linda are married and have a current year modified AGI of $350,000 and net investment income of $90,000. The tax applies to the lesser of:
(i) Net investment income ($90,000), or
(ii) Modified AGI ($350,000) over the threshold amount for married couples filing jointly ($250,000) or $100,000.
--The tax is 3.8% of $90,000 or $3,420.