What are capital gains on tax purposes?

[tonny]

Hey everyone,
I’m trying to understand how capital gains on tax work. How are profits from selling stocks, crypto, or real estate taxed? Is there a difference between short-term and long-term capital gains, and are there any exemptions or thresholds? Any simple explanation or examples would really help. Thanks!

 

[Jarwish]

Capital gains are profits made when you sell an asset—like stocks, real estate, or collectibles—for more than you paid. For tax purposes, you pay capital gains tax on this profit. Rates differ for short-term (held ≤1 year) and long-term (held >1 year) gains.

 

[Benjamin]

For tax purposes, capital gains are profits earned from selling assets like stocks, property, or investments for more than their purchase price. They are categorized as short-term or long-term, with long-term gains usually taxed at lower rates. Capital gains must be reported on your tax return for proper IRS assessment.