There are couple of ways on how capital gains are calculated, so when you have that in mind lets to into this topic of today.
The first way we will talk about is about the money you make on the sale of any items which are in your capital gain. Here the money you loose is also a capital loss.
The second way is the capital gains taxes which can be applied on your investments like bonds, real estate (not your home), stocks, boats, cars etc.
The third way is that you can use your investment capital losses to offset gains. Like if you sold some of the stocks you owned for a $15,000 profit this year and then sold some other stocks at the loss of $5,000 you will be taxed on the capital gains of the profit of $10,000. This is because you earned $15,000 but you lost $5,000 so its like you only earned $10,000.
And the last way is about the difference between your capital gains and your capital losses which for the most part is called for “your net capital gain”. This one is about if your losses are exceed your gains, you can deduct the difference as a whole on your tax return, up to $3,000 per year .
As you may be able to see, the capital gains taxes are similar to income taxes.