Basics Beginner: Capital Gains

Introduction to Capital Gains Capital Gains: Long-Term and Short-Term Realized and Unrealized Capital Gains Capital Gains Tax What Is Subject to Capital Gains Tax? Important Capital Gains Terms Summary of Capital Gains

Introduction to Capital Gains

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Recognize the forms of capital gains and what income is subject to the capital gains tax.

What you will learn

  • Capital Gains: Long-Term and Short-Term
  • Realized and Unrealized Capital Gains
  • Capital Gains Tax
  • What Is Subject to Capital Gains Tax?
  • Important Capital Gains Terms

What do you know?

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Introduction to Capital Gains

You are probably familiar with the term capital gains from the endless battles on Capitol Hill over the capital gains tax rate. The Internal Revenue Service imposes taxes on income. This includes earned income, interest and dividend income, and income derived from the sale of appreciated property held for investment. Capital gains refer to income derived from the sale of investment property over and above the cost of the property sold. The IRS imposes different tax rates on capital gain income depending upon how long the owner held the property before selling it.