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A Quick Step-By-Step Guide to Understanding Capital Gains Tax Rates and Rules
This guide to capital gains tax rates and rules was designed to help you discover how much you may owe based on the type of investment you own (stock, bond, mutual fund, real estate, gold, small business, or art, for instance), and how long you owned it.
In the special, Capital Gains Tax Guide for New Investors
, you learned what capital gains are, how the length of time you hold an investment helps determine you capital gains tax rate, and much more. This step-by-step guide is more like a cheat sheet that will provide you with a wealth of information on capital gains taxes and capital gains tax rates including:
It should provide you with a lot more information so you aren't afraid to ask your accountant or tax preparer specific questions when it comes time to write your check to the IRS. It's still important you consult with a qualified and well respected tax adviser because there are a number of factors that may cause your capital gains tax rate to be different. For instance, if you lost a lot of money several years ago, you may have what is known as a capital gains tax loss carry forward. That means that you might be able to write off any capital gains profits from this year against those old losses.