Capital Gains Taxes Explained: Short-Term Capital Gains vs. Long-Term Capital Gains

One of the main ways to profit from investing is to buy assets at one price and then sell them at a higher price. These types of profits are known as capital gains. As with most kinds of profits, they're subject to taxes. There are two types of capital gains: short term and long term. Taxes can impact the growth of your portfolio, so it's important to understand how capital gains taxes work and learn some strategies that could potentially minimize them.

(0122-1W6X)

[dandanhu]

So if i decided to sell all of my snp500 etf that i was holding for 20 years (i was buying one stock everymonth) how do i calculate the capital gains of that sale

[jrc]

Hello, if holding a stock longer than 1 year, and after that you sell, will be taxed at 15% long term capital gain. If sold in april 2024, with a sizable capital gain, do we need pay 15% taxes in this 2024 year or can wait till 2025 income tax filling ? will this incur a penalty tax?

[rowddyone]

When u pay long term capital gains on an asset u have sold is that compounded on top of current tax bracket ( ex 22%) for total of 37%?

[Dave]

What if I have capital gains on several trades, and capital losses on several others? Do I pay taxes on all the winning trades? Or only on the net gain for the year?

[sankeyscott]

So what happens if I hold 100 ABC stocks for over a year, then add 1 ABC stock and sell 1 ABC stock a week later. Would the profit from the sell of 1 ABC stock be considered long or short term capital gain?

[kaidenhinrichs]

Question, if I have a reoccurring investment going for 5 years and its still going at the end of when I sell, will I get taxed for the whole as a short term investment or some as part of long term investment and short term, just curious

[marcpi]

Why is taking a loss to lower tax a strategy? Your offsetting dollar to dollar so net loss is the same whether I cut a check to IRS or sell at a loss. What am I missing?

[bsneha]

So long term gain tax is independent of regular w2 income ? Per say my w2 is 100k and then my long term tax gain is 30k ... I will not pay any tax on the capital gain

[Marques]

Hello, if u keep stocks for let's say 20 years and never sell, and right before selling u move to Belgium for example where u don't pay capital gains tax. Is that possible to avoid paying capital gains?

[SmokieNColors]

I started investing 2 months ago and made around 100k in call options in gme and didn't know about this. Im regarded 💀

[budnino]

If I made a million long term but only took out 100 thousand. How much do I owe in taxes and what was taxed?

[kddyyvs]

Here's a question I invested my money in the penny stock that's very bullish so what happens if I make a couple million off capital gains and refuse to pay it you know I go on a run like Charlie Sheen and spend it all then quit my job and become homeless live with a friend and have no assets what would happen 10 million dollars worth of stocks I'm not giving the government 50% of it f that I'd rather spend it like Charlie Sheen and have fun and then just own nothing for the rest of my life and hell if I get to retire in a jail that's fine free food free bed to sleep. Don't tell me prison food is crap there are starving Africans that give their lives to have the Canadian ship prison food. So once again what would happen if I make 10 million on stocks and then I spend it all😊

[grabbingbythe]

Who have been the beneficiaries of 50% Capital gain tax? The real estate investors; not the people who buy homes to live. The stock/ crypto traders, who have no real contribution to the economy; the commodity traders (via Asset backed securities and Exchange traded funds) who priced out the real users of those commodities. Think about the thousand of families who have to buy gold for their children's marriage in India and elsewhere. They can't buy gold anymore because the speculators (so called investors) who bought Gold ETFs artificially inflated the Gold price. This whole system is a scam and must be done away with. The first step is tax Capital gain 100% like any other income. Well done Trudeau!

[luhole]

2:23 what??? Why is the $82k income going into the $45k tax bracket bucket? This infographic makes no sense to me.

[davidbrooks]

So basically you're screwed anyway it goes and then they wonder why Americans can't get ahead😮😢

[poincareconjecture]

Ohhh man ...1st law of thermodynamics...no one on Robinhood's laughing now😢

[keithmachado-ppfv]

Here is a brain teaser. True or False? At a certain income level, generating additional income as long term capital gains cost more in tax than generating the same additional income in short term capital gains or ordinary income.

[louisarichardson]

to me it a waste time to invest lose all in taxes