When you sell an investment like stocks, real estate, or cryptocurrency for more than you paid for it, that profit is called a capital gain—and it's taxable income. This section covers the basics of how capital gains work, the difference between short-term and long-term gains, and what you need to know about reporting them on your tax return. Whether you're selling a rental property, cashing out investments, or wondering how your trading activity affects your taxes, understanding capital gains helps you see what you might owe.
The articles here answer practical questions: How do you calculate a capital gain? What's the difference between holding an investment for one year versus two years? How do you report capital gains on your taxes? What records do you need to keep? These guides explain the mechanics so you can understand your tax situation and prepare the information your tax preparer or accountant will need.