Capital gains taxes are owed when an investor realizes a return on an investment. Because capital gains are different than regular income, they are treated differently by the Internal Revenue Service (IRS) and taxed at a different rate.
There are two types of capital gains tax: short term capital gains tax, and long term capital gains tax. It is also possible to realize capital losses, which must also be accounted for on an investor’s tax returns.
In this video, we will explore:
What are capital gains?
What’s the difference between long term and short term capital gains?
How are capital gains calculated?
How are capital gains different from regular income?
How high are capital gains taxes?
What are capital losses?
Can you offset capital losses?
For investors interested in how you can defer capital gains taxes, check out the following informational videos:
UPREIT: How to Defer Capital Gains Tax With a 721 Exchange