How do I report capital gains on my taxes?

How do I report capital gains on my taxes?

To report capital gains, you'll need to fill out Schedule D and include it with your Form 1040.

What if I sold stocks at a loss?

If you sold stocks at a loss, you can report those losses to offset your capital gains, which may reduce your tax liability.

Are there different types of capital gains?

Yes, there are short-term and long-term capital gains, depending on how long you held the asset before selling.

What records do I need to keep for reporting?

You should keep records of your purchase and sale transactions, including dates, amounts, and any related fees.

Can I deduct capital losses from my income?

Yes, you can deduct capital losses from your ordinary income, up to a limit of $3,000 per year.