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