What does Capital Gain or Loss from Assets Acquired After December 31, 2011 Enter the portion of gain or loss from assets acquired after December 31, 2011 mean?

what are you trying to do when this question comes up ?

For me it shows a long-term capital loss of -99,349 which looks like a carryover. This comes up while starting my Arizona State taxes. Any ideas what this means

If you have a capital gain or loss on your federal return, it typically came from the sale of investment assets, like stocks. It looks like you have a carryover of $99,349 from losses on investment sales reported in prior years.

In the current year, that loss will be applied to current year net gains, if any, and the remainder will be deducted in the amount of $3,000 this year. 

The question then is, is any of the current year gain or loss reported on your federal return associated with investments that you acquired after December 31, 2011? So, you need to look at the investment sales in the current year and those that took place in earlier years, as represented in the $99,349 carryover losses that were used in 2020 against the gains in 2020.

Same here. Says "You have a net long-term capital gain of $386" "Enter the portion of gain/loss from assets acquired after December 31, 2011" - Sorry. Don't know what's going on exactly. Can't TT just figure this out for us?

@stefansfo If you have a Capital Gain this year (probably from a Stock Sale reported on 1099-B), you could enter $386 as 'Portion of Gain/Loss from Assets Acquired After December 31, 2011.'

Unless you know that you sold old stock that you purchased prior to that date.

Check the 'Date Acquired' on your 1099-B to verify this. 

Click this link for detailed info on Capital Gains. 

@stefansfo 

that date is when covered transactions came into being and your broker knows what you paid and will report it.

assets purchased before that, you have to supply the basis from your own records.

The question is there because AZ allows a 25% reduction of LTCG included in the federal AGI.  However, that 25% reduction is only for capital assets purchased after 12/31/2011.  The Arizona tax return has a worksheet to calculate the amount...but most broker 1099's won't supply the LTCG for assets purchase after 12/31/2011...so may require some hand calculations to arrive at the post-2011 LTCG.

So if I recieved this question, I should check my investment portfolio and see what the net capital gain is ??

You want to see what the gain is for the investments you have held since Jan 1, 2012.

The clarification provided earlier are not clear. @AmyC 

I am filing taxes for 2021. I bought a share in 2019 and sold it in 2021 for a gain of say $500 (it's the only long term capital gain I made in 2021). Do I need to enter the amount $500 under "Enter the portion of gain or loss from assets acquired after December 31, 2011"?

(or) do I need to sum up all the long term gains from investments I made after Dec 31st 2011 until 2021 and enter the resultant amount?

Yes. No, not the total. Here are some examples for portion of gain or loss from assets acquired after Dec 31, 2011:

• Sold stock- bought in 2012 - enter the full gain
• Sold stock- bought in 2011 - nothing to enter
• Did you sell the house that has been in the family for 30 years with various cousins living in it? It is from before 2012 and the gain does not count.

Anything from 2012 or later will go in the box and it is only for sales from the current year, not all of your assets since 2012.

@d_unltd

Amy - we didn’t sell any stocks but the 1099-DIV is showing long term capital gain.  How do we find out if capital gain is  from assets acquired after 12/31/2011?

When entering a 1099-DIV it does not ask you about when the asset was acquired.  For a 1099-DIV just enter the amounts in Box 1a, 1b, and 2a on the 1099-DIV screen.  Box 2a is the capital gains.   

@mithdeduct317

But how do I respond to question on AZ tax?  It’s asking for capital gain on assets acquired after 12/31/2011.

@mithdeduct317  Enter the amount from box 2a.

Same or similar questions in 2023 for tax year 2022.  When I get to the Arizona tax section titled "Capital Gain or Loss from Assets Acquired After December 31, 2011", I see "Capital Gain or Loss from Assets Acquired After December 31, 2011" followed by the box prefilled with my LTCG or LTCL. My questions are:

1. In addition to LTCG or LTCL, are STCL (net short-term capital losses) supposed to be added to this box? Or, only LTCL?

2. My scenario is this: LTCL: < $500

STCL: Near $20,000

Thank you in advance for your response.

No. Capital gain is by definition long term, and short term by definition is ordinary gain. 

For Arizona state tax purposes, you're allowed to subtract 25% of any net long-term capital gain that's been included in your federal adjusted gross income when it was derived from an investment in an asset acquired after December 31, 2011.

• AZ Form 140 Instructions (see page 12, Lines 20 through 24 - Net Capital Gain or (Loss)

@AZ-Taxes 

DianeW777, thank you.

Working on my AZ tax return and also a bit confused by this.  Hoping someone can help.

Example scenario:  
You have a total net long term capital gain of $1500    What is the portion for assets acquired after Dec 31, 2011?
 

Based on the math, it appears that capital gain distributions are also factored into this figure (for which acquisition dates are not available, so should not be included in the input figure based on research I've done).

And the NET gain/loss from the sale of assets is a NET of several different transactions, all with assets with different acquisition dates.  

So my net long-term capital gain of $1500 could be made up of:
$1700 capital gains distribution (no acquisition dates available)

$800 LT gain (assets before Dec 31, 2011)
-$1000 LT loss (assets after Dec 31, 2011)

What would I enter?

$800 of the gain is definitely associated with investments that were acquired before December 21, 2011, so that is your best answer.