Here’s what You Should Know about Capital Gains Tax 2014
Did you sell certain assets such as stocks or bonds during the tax year? If so, you’ll need to report it on your tax return as a capital gains. The tax you pay on it will be dependent on the type of capital gain it is and your income tax bracket.
As of 2013, the capital gains tax rate has become significantly more complicated. Fortunately, RapidTax is here to help clarify how much you’ll need to pay in capital gain tax. We’re also here to help you report your capital gains; both short term and long term.
Difference Between Long Term & Short Term Capital Gains
You may incur capital gains if you sell a certain asset such as;
- stocks
- bonds
- property owned & used for personal purposes
- property owned & used for investment purposes
Do note however; not all capital gains are the same. The IRS divides capital gains into two categories; short-term and long-term. Short-term and long-term capital gains are taxed differently. Before learning the capital gains rates, you’ll first need to know the difference between the two;
- Short-term capital gains: assets held for one year or less and sold
- Long-term capital gains: assets held for longer than one year and sold Continue reading “Capital Gains Tax 2014”
