What is capital gains?

benval47 — Mon, 23 Feb 2026 12:32:01 GMT

Re: What is capital gains?

HelenC12 — Tue, 14 Feb 2023 23:24:57 GMT

When you sell a capital asset, the difference between its cost basis and the selling price results in a capital gain or loss.

A capital gain is when your asset's sales price exceeds its cost basis (in other words, you made money). Capital gains must be reported on your tax return.
A capital loss is when you sell the asset for less than its cost basis. Capital losses from investments can be deducted, but not those from personal-use assets, such as your home or personal vehicle.

Your total capital gains for the year minus your total capital losses results in either a net capital gain or a net capital loss.

Short term capital gains (gains on assets held one year or less) are taxed as ordinary income.
Long term capital gains (gains on assets held more than one year) are taxed at a more favorable rate than ordinary income.
Net losses are deductible, but only up to a maximum of $3,000 ($1,500 if married filing separately). Any capital losses you couldn't deduct this year can be carried forward and deducted on future tax returns. This is called a capital loss carryover.

Your long-term gain will be taxed at 0%, 15%, or 20% depending on your income.

If you have a short-term gain it will be taxed as ordinary income using your marginal tax rate. If your cost exceeds your sales price, you have a capital loss. You can deduct up to $3,000 in capital losses from your income.

Capital gains, losses, and 1099-B forms are all entered in the same place:

Open or continue your return in TurboTax
Search for investment sales and then select the Jump to link in the search results
Answer Yes to the question Did you have investment income in 2022?
- If you land on the Your investments and savings screen, select Add investments
Follow the instructions and we'll calculate the gain or loss from the sale

Your total capital gains for the year minus your total capital losses result in a net gain or a net loss.

You can deduct a net loss of up to $3,000 ($1,500 if married filing separately). Any capital loss you couldn't deduct this year can be carried forward and deducted on future tax returns as a capital loss carryover.

Related Information:

Re: What is capital gains?

Hal_Al — Wed, 15 Feb 2023 12:53:26 GMT

Capital gains is the profit you make on the sale of an investment (stocks, mutual funds and real estate being the most common examples). Long term (owned more than 1 year) capital gains are taxed at lower rates. Some are even taxed at 0%.

topic What is capital gains? in Investors & landlords

What is capital gains?

Re: What is capital gains?

Re: What is capital gains?