ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Capital gains taxes are owed on the profits from the sale of most investments if they are held for at least one year. The taxes are reported on a Schedule D form. The capital gains tax rate is 0%, 15%, or 20%, depending on your taxable income for the year.

Detailed explanation-2: -Capital Gains Tax is a tax on the profit when you sell (or ‘dispose of’) something (an ‘asset’) that’s increased in value. It’s the gain you make that’s taxed, not the amount of money you receive.

Detailed explanation-3: -When you sell a stock from a taxable brokerage account, you’ll usually need to pay capital gains tax. Short-term capital gains tax is the same as your income tax rate, while long-term capital gains tax is lower. Dividends are also usually taxable income-but qualified dividends are taxed at a lower rate.

Detailed explanation-4: -Capital gains are realized when an investor sells an asset, such as a stock, at a price higher than the price paid to purchase it.