taxpayers reported 33.5% more in net capital-gains income in 2017 than in 2016. The strong economy and stock market in a year when the SP 500 index…

QUESTIONS: 

1. (Advanced) What are capital gains? How are they taxed? How are they taxed differently from ordinary income? Why are they taxed differently?

2. (Introductory) What are the statistics reported in the article for capital gains in 2017 vs. 2016?

3. (Introductory) When was the Tax Cuts and Jobs Act enacted? When did it take effect? When did taxpayers begin planning for the changes?

4. (Advanced) How did the Tax Cuts and Jobs Act affect the taxation of capital gains? How could these changes have affected the capital-gains income in 2017? What other conditions could have affected capital gain in 2017?