Capital gains come from owning capital assets. You start out with the base price of what you paid for the home, furniture, stocks, bonds, or almost everything you own and use for personal or investment purposes. These “things” are your capital assets. Now, if you sell any of these things then, the difference between the price you paid for it and the price you sell it for is a capital gain or a capital loss.
Capital Gains and Capital Losses
If you sell the item for more than what you paid for it then, you have a capital gain. If you sell the item for less than what you paid for it then, you have a capital loss. When you have a loss from the sale of property of personal use, for example, your home, or car then, personal losses are not deductible.
Long Term Short Term
If you hold onto a capital gain for more than a year before you cash in on it then, it is considered a long term capital gain or loss. If you hold onto it for one year or less then, it is considered a short term capital gain or loss.
So Much More to Know
I really can’t cover all of the aspects of capital gains in this writing. If you’re looking for more information on capital gains tax rate, I would consult the tax experts at Turbo Tax Online. They hold the #1 rating for the best online tax return preparation software on the market. Their website is very easy to use and understand. Got a question about using Turbo Tax? Free technical support is at your fingertips. You can get answers from a Turbo tax expert via e-mail, phone, or live chat.
Capital Gains and Losses Information
You’ll want to know more about Form 1040 Schedule D, net capital gain, which is currently taxed at rates no higher than 15%. Sometimes there are exceptions and things have changed for the duration of 2008 through 2010. This is why it’s important to run the tax return software. Who can keep up with all the changes in tax laws?
Save yourself a lot of frustration and worry. Go to TurboTax Online, enter your information and you will have answers just for your unique situation in life. They will even track your audit risk and alert you with a red flag if something isn’t right. Do yourself a favor and let the tax experts handle all the new laws. You will not have to worry about keeping up with the changes and they guarantee the largest refund you deserve!
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