Federal Tax Compliance

Capital Gains Tool.

Calculate your true net profit. Handle short-term vs long-term asset sales using 2024 IRS benchmarks.

Short-term gains (held < 1 year) are taxed as ordinary income. Long-term gains receive favorable rates of 0%, 15%, or 20% to encourage long-term investing.

IRS Tax Obligation
$0
Total Capital Gain$0
Effective Tax Rate0%

Tax-Loss Harvesting

You can offset your capital gains by selling underperforming assets at a loss. In the USA, you can also deduct up to $3,000 in net losses against your other income.

IRS Form 8949 Guide

Understanding Capital Gains: The 2024 Strategic Guide

"It’s not how much you make, it’s how much you keep. Capital gains tax is the price of successful investing, but smart planning can lower that price significantly."

Short-Term vs. Long-Term: The 366 Day Reward

In the United States, your holding period is the single most important factor in your tax bill. If you hold an asset for 365 days or less, your profit is 'Short-Term' and taxed at your regular income bracket (up to 37%). If you hold for **366 days or more**, it becomes 'Long-Term,' and you could pay **0%** if your income is below $47,000, or a maximum of **20%** if your income is high.

2024 Long-Term Gain Brackets (Single)

0%

Income under $47,025

15%

Income $47k - $518k

20%

Income over $518,900

Real Estate Specifics: Section 121 Exclusion

Selling your primary home? In the USA, you might not owe any capital gains at all. **Section 121** allows individuals to exclude up to $250,000 (Single) or $500,000 (Married) of profit from the sale of their primary residence, provided they lived in it for 2 of the last 5 years.

Capital Gains FAQ

What is a 'Wash Sale'?

A wash sale occurs when you sell a security at a loss and then buy a 'substantially identical' security within 30 days. The IRS prevents you from claiming the tax loss in this scenario.

Do I pay tax on crypto gains?

YES. The IRS treats cryptocurrency as property. Selling, trading, or even using crypto to buy a cup of coffee triggers a capital gains event that must be reported.