This is the sale price minus any commissions or fees paid. Basis may also be increased by reinvested dividends on stocks and other factors. This is generally the purchase price plus any commissions or fees paid. Also, gains on some types of sales, such as rental real estate and collectibles, may be taxed at different rates. If you realize a profit on assets held one year or less (short-term capital gain), these will be taxed as ordinary income. Keep in mind, the capital gain rates mentioned above are for assets held for more than one year. Let’s take a closer look at the details for calculating long-term capital gains tax. How to Figure Long-Term Capital Gains Tax Depending on your income level, your capital gain will be taxed federally at either 0%, 15% or 20%. The first step in how to calculate long-term capital gains tax is generally to find the difference between what you paid for your property and how much you sold it for-adjusting for commissions or fees.
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