What are capital gains tax rates?

What are capital gains tax rates?

Capital gains tax rates are taxes on the profit from the sale of assets or investments. They can vary based on how long you've held the asset.

What are the different rates for short-term and long-term capital gains?

Short-term capital gains are typically taxed as ordinary income, while long-term gains are taxed at reduced rates, usually 0%, 15%, or 20% depending on your income.

How do I determine if my gains are short-term or long-term?

You can determine this by looking at how long you've held the asset. If you held it for one year or less, it's short-term; if more than one year, it's long-term.

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

Yes, there are exemptions like the primary residence exclusion, and you can also offset gains with losses through tax-loss harvesting.