Capital Gains Tax Rates in 2020: A Comprehensive Guide
Every investor wants their investments to rise in value. But when you sell a winning investment, you typically don't get to keep all your profits. Instead, the IRS steps in with taxes on your capital gains, leaving you with just a portion of the money you made investing.
Taxing your investment profits could be simple, but under the current tax laws, it's anything but. With many different sets of rules, tax rates, and special provisions, it takes some effort to find out exactly how capital gains taxes work. Below, you'll learn everything you should expect on capital gains taxes and how you can cut your tax bill.
Capital gains are the profits from an investment when you sell it for more than you paid for it. It's usually fairly easy to figure out whether you have a capital gain, especially with publicly traded investments like stocks or funds. If the price of your stock or fund has gone up since you bought your shares, you'll generally have a capital gain, and if the price has gone down, you'll have a capital loss.
Source Fool.com
