WalletHub, Financial Company
@WalletHub
Capital gains tax is a tax imposed on the profit realized from the sale of an asset. Capital gains are realized when a person sells property or investment assets (stocks, bonds) at a price that is higher than the purchase value. For example, if you buy stock for $2,000 and sell it for $3,000, you have a $1,000 capital gain for which you must pay tax.
Dmitriy Fomichenko, President, Sense Financial
@dfomichenko
Whenever you sell a capital asset for more than its adjusted basis value, you make money on the transaction and its call capital gain. In simple words, it is the benefit you receive from selling a capital good for profit.
The IRS requires you to pay tax on this capital gain. The tax rate may vary depending upon the fact that whether it was a long-term or short-term investment. Short-term investments (held for less than a year) are taxed at a higher rate. Always refer a tax professional for more information.
People also ask
Is car insurance tax deductible?
Car insurance is tax-deductible for self-employed people who use their car for business reasons, as well as for select other occupations. For example, car insurance is tax-deductible for armed forces reservists who travel for duty, some performing artists, and certain government employees who are paid via fees-per-service.
Business use means trips taken for work, but commuting to and from work is not deductible. For example, a photographer’s drive to her studio would not be...
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