Everything to Know About Capital Gain Tax
Capital gain tax is imposed on the profits earned from the sale of the assets such as stocks, real estate or other equity-based investments. It is the tax an investor needs to pay when they profit from their trade or investment. It creates a tax liability to the investor, and the higher the profits, the higher the capital gain taxes. Here we will deal with the various aspects of capital gain taxes and how you can reduce the net returns earned from the profits, which will help you to save on taxes. 1. Understanding the Types of Capital Gains Short-term Capital Gains Short-term capital gains happen when you realize a profit from an asset or investment in less than a year of your holding. Since the asset is on hold for a short term, it comes under a different tax rate. Different federal authorities hold different tax percentages on the amount of realized profits. A tax attorney in the Bay area or at your location can help their clients utilize the amount to buy some other asset where th