Capital gains tax applies when you sell an investment or asset for more than you paid for it. The difference between your purchase price and sale price is your gain, and the IRS taxes that profit. You report capital gains on your tax return whether you sold stocks, real estate, cryptocurrency, or other property. Understanding how to calculate your gain and which tax rate applies depends on how long you held the asset and your income level.
These articles explain how to report sales on your return, the difference between short-term and long-term gains, how to find your cost basis, and what records you need to gather. You'll also learn which sales require reporting and how to handle losses, which can reduce your tax liability.