Capital gains tax
Also called: short-term capital gains, long-term capital gains
Capital gains tax is tax on the profit from selling an investment for more than you paid. In the US, gains on assets held over a year are taxed at lower long-term rates (0%, 15% or 20%) than short-term gains, which are taxed as income.
Losses can offset gains, and up to $3,000 a year of net losses can offset ordinary income in the US, with the rest carried forward.
In Journey Shares
Game gains on shares held a week or less are taxed at 22%, longer holds at 15%, on a weekly tax year. →
Related terms
- Capital gain: A capital gain is the profit from selling an investment for more than you paid for it; selling for less is a capital loss.
- Cost basis: Cost basis is what you paid for an investment, including fees, used to work out your gain or loss when you sell.
- Wash sale rule: The wash sale rule stops you from claiming a tax loss if you buy the same or a substantially identical investment within 30 days before or after selling it at a loss.
- Tax bracket: A tax bracket is a range of income taxed at one rate.
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