What assets are subject to capital gains tax?

What assets are subject to capital gains tax?

Capital gains tax applies to assets like stocks, bonds, real estate, and collectibles when sold for a profit.

Are there any exemptions for certain assets?

Yes, primary residences may qualify for exemptions under certain conditions, and some retirement accounts are also exempt.

How is the capital gains tax rate determined?

The rate depends on how long you've held the asset: short-term gains are taxed as ordinary income, while long-term gains have lower rates.

What if I sell an asset at a loss?

If you sell an asset at a loss, you can use that loss to offset capital gains, potentially reducing your tax liability.

Can I carry over losses to future years?

Yes, you can carry over unused capital losses to future tax years to offset future gains.