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