![]() Net capital gain from selling collectibles (such as coins or art) is taxed at a maximum 28% rate. Capital gains rates for individual increase to 15% for those individuals with income of $39,376 and more (($78,751 for married filing joint, $39,376 for married filing separate, and $52,751 for head of household) and increase even further to 20% for those individuals with income over $434,550 ($488,850 for married filing joint, $244,425 for married filing separate, and $461,700 for head of household). Net capital gains are taxed at different rates depending on overall taxable income, although some or all net capital gain may be taxed at 0%. The term "net capital gain" means the amount by which your net long-term capital gain for the year is more than the sum of your net short-term capital loss and any long-term capital loss carried over from the previous year. If you have a net capital gain, that gain may be taxed at a lower tax rate than the ordinary income tax rates. If you hold it one year or less, your capital gain or loss is short-term.Ĭapital gains and deductible capital losses are reported on Form 1040. ![]() ![]() If you hold the asset for more than one year before you dispose of it, your capital gain or loss is long-term. Losses from the sale of personal-use property, such as your home or car, are not deductible.Ĭapital gains and losses are classified as long-term or short-term. You have a capital loss if you sell the asset for less than your basis. You have a capital gain if you sell the asset for more than your basis. When a capital asset is sold, the difference between the basis in the asset and the amount it is sold for is a capital gain or a capital loss. 1 Examples are a home, household furnishings, and stocks or bonds held in a personal account. Almost everything owned and used for personal or investment purposes is a capital asset.
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