How do I calculate capital gains tax?

How do I calculate capital gains tax?

To calculate capital gains tax, you need to determine the profit from the sale of an asset. This is done by subtracting the purchase price from the selling price.

What if I held the asset for more than a year?

If you held the asset for more than a year, you may qualify for long-term capital gains tax rates, which are typically lower than short-term rates.

Are there any deductions I can apply?

Yes, you can deduct certain expenses related to the sale, such as transaction fees and improvements made to the asset.

What forms do I need to file?

You will typically need to file Schedule D and Form 8949 with your tax return to report capital gains and losses.