| Would you like to know what is | | | | taxed at 5%. |
| considered capital gains by the IRS? | | | | How do I know if I have a short term or |
| Would you like to know how much it might | | | | long term gain? To determine whether you |
| cost you? | | | | have a long or short term capital gain |
| Capital gains is what the IRS says is | | | | is quite simple. Property that you own |
| your profit when you sell something that | | | | for less than one year is defined as |
| is defined as a capital asset. Real | | | | short term. Property that you own for |
| estate, mutual fund shares, stocks, and | | | | more than one year is defined as long |
| bonds are all considered capital assets. | | | | term. |
| If you inherited a home or real estate | | | | What if I lost money? |
| you might be subject to the capital | | | | If you lost money on a capital asset it |
| gains tax. | | | | can be deducted on your taxes. Money |
| How Much is The Capital Gains Tax Rate? | | | | that you lost on an investment is used |
| Your tax will depend on a few things. If | | | | first against profits you've made on |
| you have a short term capital gain you | | | | another investment. Short term and long |
| will be taxed at your normal tax rate. | | | | term capital losses can both be deducted |
| However, if you have a long term gain | | | | but there are certain rules for each |
| you will be taxed at 15%. If you are in | | | | type of capital gain. |
| a tax bracket of 14% or less you'll be | | | | |