Everything To Know About Defer Capital Gain Tax
Capital Gains Tax is a tax on the profit you make when you sell something for more than what you paid for it. For example, if you buy an asset for $1,000 and then sell it for $2,000, your capital gain would be $1,000. The good news is that there are ways to defer or avoid paying this tax altogether! Here is everything about when you want to defer capital gain tax : What is Capital Gains Tax Before we talk about the defer capital tax gain , capital gains tax is a form of taxation that applies to the profit you make from selling an asset, such as stocks or bonds. Capital gains tax is calculated by subtracting the original purchase price from the sale price and then applying a capital gains tax rate to that difference. There are several different types of capital gains taxes depending on your situation: Short-term capital gains tax applies when you sell an asset within one year of buying it; this type of capital gains tax has lower rates than long-term capital gains taxes because they...