How Capital Gains Are Calculated

For these of you who dont know what capital gains is then let me quickly explain it.

Capital gains are the profits from the sale of an asset and generally are considered taxable income

These assets can be everything from shares of stock, a property or a business.

So how capital gains are calculated? 

There are actually many ways how capital gains are calculated. But keep in mind that capital gains taxes are progressive which means that it is similar to income taxes.

Capital gains taxes can apply to your investments, such as stocks, real estate etc.

You can use your investment capital losses to offset gains. Keep in mind that the money you lose is called a capital loss.

The money you make on the sale of any items is your capital gain. Our capital gains tax calculator can help you estimate your gains.

The difference between your capital gains and your capital losses is called your “net capital gain.”


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