How do I calculate my capital gains tax?

How do I calculate my capital gains tax?

To calculate your capital gains tax, you need to determine your capital gains, which is the profit from selling an asset.

What information do I need to calculate my capital gains?

You'll need the purchase price, selling price, and any associated costs like fees or improvements.

Are there different rates for short-term and long-term capital gains?

Yes, short-term capital gains are taxed as ordinary income, while long-term gains are usually taxed at a lower rate.

Can I offset my capital gains with losses?

Yes, you can use capital losses to offset your gains, which can reduce your overall tax liability.