What are the tax implications of selling my assets?

What are the tax implications of selling my assets?

When you sell assets, you may be subject to capital gains tax on the profit made from the sale. This depends on how long you've held the asset.

How is capital gains tax calculated?

Capital gains tax is calculated based on the difference between the selling price and the purchase price of the asset. If you've held the asset for more than a year, you may qualify for lower long-term capital gains rates.

Are there any exemptions or deductions I should be aware of?

Yes, there are exemptions like the primary residence exclusion, and you can also deduct certain expenses related to the sale.

What if I sell at a loss?

If you sell an asset at a loss, you can use that loss to offset capital gains from other sales, which can reduce your overall tax liability.