Microsoft KB Archive/174114

= Money 98: Maximum Capital Gains Tax Applied Incorrectly =

Article ID: 174114

Article Last Modified on 1/20/2007

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APPLIES TO


 * Microsoft Money 98 Standard Edition
 * Microsoft Money 98 Deluxe Edition
 * Microsoft Money 98 Financial Suite Edition

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This article was previously published under Q174114



SYMPTOMS
When you use the Tax Worksheet in Microsoft Money 98 the tax liability may not be calculated correctly. Money may apply the maximum Capital Gains Rate even though there is a capital loss.



CAUSE
This problem may occur when the following conditions are true:
 * You use the Tax Estimator to calculate the tax.

-and-
 * The Short-Term Capital Gains amount is negative.

-or-
 * The Long-Term Capital Gains amount is negative.



RESOLUTION


MORE INFORMATION
You can only apply the Long-Term Capital Gains tax at a maximum rate when both the Short-Term and Long-Term Gains are positive. The way the tax worksheet code is calculating the tax, you are getting a double benefit. The benefit is a Capital Loss and capped taxation on the Long-Term Capital Gains, which was already included in the loss.



STATUS
Microsoft has confirmed this to be a problem in the Microsoft products listed at the beginning of this article.

This problem has been corrected in Microsoft Money 99.

Additional query words: w_money 6.0 woody

Keywords: kbbug kbfix KB174114

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