Capital Gains: Everything You Need to Know

What are Capital Gains?

Any profit or gain that arises from the sale of a capital asset is a capital gain. A capital asset is any property that is not used for personal or business purposes, such as stocks, bonds, real estate, and collectibles.

Short-term Capital Gains

Short-term capital gains are profits from the sale of a capital asset that has been held for less than one year. These gains are taxed at your ordinary income tax rate.

Long-term Capital Gains

Long-term capital gains are profits from the sale of a capital asset that has been held for more than one year.

These gains are taxed at a lower rate than short-term capital gains.