1 Comment
  1. Prashant Thakur says

    Capital Assets are properties you own. So example of properties that are considered capital asset are your home or land as well as stocks and bonds.

    When you sell or transfer these properties for a consideration , and earns any profit out of such a sale or transfer , a tax is imposed on gain . This gains is known as capital gains and tax is called capital gains tax.

    The capital gsins or loss can be of two types -long term and short term.

    How to determine long term or short term asset?
    Simple if the asset sold was held by you for more than 12 months , its long term asset , if not is short term.Short term is taxed at normal rate , but for long term capital gains there are rates prescribed under Internal Revenue Code. This website shall create a number of calculators based on 26 US Code .
    Long term capital gains calculator

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