Capital gains are the gains realized from the sale of capital assets just like stocks, bonds, and property.
The American Taxpayer Relief Act of 2012 instituteda 20 long term capital gains tax rate for taxpayers in the 396 income tax bracketand extended both the0 capital gains tax rate for individuals in the 10 and 15 tax brackets and the 15percentage capital gains tax rate for all other tax brackets. Mutual fund investors could’ve been charged capital gains on investments in the fund that are sold by the fund in the course of the year. Lots of information can be found online. Long term’ gains are gains on assets held longer than 12 months before they are sold. There are two capital types gains. Shortterm’ gains are taxed as ordinary income at the seller’s marginal income tax rate. The capital gain tax is triggered only when an asset is sold, not while the asset is held by an investor.
The taxable percentage of any gain is determined by a cost basis in other words, the original purchase price adjusted for additional improvements or investments, taxes paid on dividends, certain fees, and any depreciation of the assets. Losses of up to or state regulations and registration requirements regarding investment products and services.