Tax Implications of Different Types of Investments
Stocks When you sell a stock at a profit you incur capital gains taxes, which are calculated according to the amount of time that the stock is actually held .
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Explanation of the Capital Gains Tax and Related Issues
Whenever you sell an investment at a profit, you will (in most cases) owe the IRS a tax known as a capital gains tax. This is true for most investments, including mutual funds, bonds, options, collectibles, your home, or business. Capital gains are the amount by which an asset's selling price exceeds its initial purchase price. A realized capital gain is an investment that has actually been sold at a profit. An unrealized capital gain is an investment that hasn't been sold yet but would result in a profit if sold; the gain equals the difference between the purchase price and the selling price. The term capital gain is often used to mean realized capital gain. The opposite of a capital gain is a capital loss, which occurs when the selling price of an investment is less than the purchase price. (more)
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