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Capital Gains Tax Calculator
Calculate tax on capital gains from investments, property, and asset sales.
Capital Gains Tax Calculator
Calculate taxes on gains from stocks, crypto, or property investments
Capital Gains Summary
Total Buy Value:Rs.100,000
Total Sell Value:Rs.150,000
Holding Period:0 daysShort Term
Capital Gain:Rs.0
Capital Loss:Rs.0
Net Gain/Loss:Rs.0
Tax Rate:0%
Tax Amount:Rs.0
Net Amount After Tax:Rs.0
About Capital Gains Tax
Capital gains tax is levied on profits from the sale of capital assets like stocks, property, and investments. The tax rate depends on the type of asset and holding period, with different rules for short-term and long-term gains.
Short-term Capital Gains:
- • Stocks/Mutual Funds: < 1 year
- • Property/Bonds/Gold: < 3 years
- • Crypto: < 3 years
- • Taxed as per income tax slabs
Long-term Capital Gains:
- • Stocks/Mutual Funds: 10% (no indexation)
- • Property/Bonds/Gold: 20% (with indexation)
- • Crypto: 30% (no indexation)
- • Indexation reduces tax burden
About Capital Gains Tax Calculator
What is Capital Gains Tax?
Capital gains tax is a levy on the profit earned from selling an asset that has increased in value. These assets can include stocks, bonds, real estate, precious metals, and other investments. The tax applies only to the gain (profit) - the difference between what you paid for the asset (cost basis) and what you sold it for. In most countries, capital gains are taxed at different rates than ordinary income, often with preferential rates for long-term holdings.
Types of Capital Gains
Short-Term Capital Gains
- • Assets held for 1 year or less
- • Taxed as ordinary income
- • Rates range from 10% to 37% (U.S.)
- • No preferential tax treatment
Long-Term Capital Gains
- • Assets held for more than 1 year
- • Eligible for preferential tax rates
- • Rates range from 0% to 20% (U.S.)
- • May qualify for additional exemptions
Current U.S. Capital Gains Tax Rates (2023)
| Filing Status | 0% Rate | 15% Rate | 20% Rate | Additional 3.8% Net Investment Income Tax |
|---|---|---|---|---|
| Single | Up to $44,625 | $44,626-$492,300 | Over $492,300 | Over $200,000 |
| Married Filing Jointly | Up to $89,250 | $89,251-$553,850 | Over $553,850 | Over $250,000 |
| Head of Household | Up to $59,750 | $59,751-$523,050 | Over $523,050 | Over $200,000 |
Key Concepts in Capital Gains Taxation
Cost Basis
- • Original purchase price of asset
- • Plus any commissions/fees
- • Adjusted for stock splits/dividends
- • Can be increased by improvements (real estate)
Realized vs. Unrealized Gains
- • Unrealized: Paper gains (asset not sold)
- • Realized: Actual profit from sale
- • Only realized gains are taxable
- • Step-up basis at inheritance
Wash Sale Rule
- • Prohibits claiming loss if same security repurchased within 30 days
- • Applies to stocks, bonds, ETFs, options
- • Doesn't apply to gains
- • Designed to prevent artificial losses
Special Capital Gains Rules
Real Estate Exclusions
- • Primary residence: $250,000 single/$500,000 married exclusion
- • Must own and live in home 2 of last 5 years
- • Can only claim once every 2 years
- • 1031 exchanges defer taxes on investment properties
Collectibles & Small Business Stock
- • Collectibles taxed at 28% maximum rate
- • Qualified small business stock may have 50% exclusion
- • Section 1202 exclusion for certain startup investments
- • Art, coins, precious metals have special rules
Capital Losses and Tax Harvesting
Offsetting Gains with Losses
Capital losses can be used to offset capital gains dollar-for-dollar. If your losses exceed your gains, you can deduct up to $3,000 against ordinary income annually ($1,500 if married filing separately), carrying forward any remaining losses indefinitely.
Tax-Loss Harvesting Strategies
- • Selling losing positions to offset gains
- • Rebalancing portfolio while minimizing taxes
- • Avoiding wash sale rules when repurchasing
- • Using losses to offset ordinary income
State Capital Gains Taxes
In addition to federal taxes, many states impose their own capital gains taxes:
Highest Tax States
- • California: 13.3% top rate
- • New York: 10.9% top rate
- • New Jersey: 10.75% top rate
- • Oregon: 9.9% top rate
No Income Tax States
- • Alaska
- • Florida
- • Nevada
- • South Dakota
- • Texas
- • Washington
- • Wyoming
International Considerations
Foreign Assets
U.S. taxpayers must report worldwide capital gains. Foreign tax credits may be available for taxes paid to other countries. Special reporting applies to foreign financial accounts (FBAR, Form 8938).
Nonresident Aliens
Nonresident aliens are generally subject to a flat 30% tax on U.S.-sourced capital gains (or lower treaty rate). However, gains from the sale of U.S. real property interests are taxed differently under FIRPTA.
Using Our Capital Gains Tax Calculator
Our calculator helps you estimate your capital gains tax liability by accounting for your filing status, income level, holding period, and state of residence. Simply enter your cost basis, sale price, holding period, and other relevant details to see your estimated tax obligation. The calculator can handle:
- • Short-term vs. long-term gains
- • Multiple asset sales in one year
- • Capital loss carryforwards
- • State tax calculations
- • Net Investment Income Tax (NIIT)
Use the calculator to plan asset sales, evaluate investment strategies, and minimize your tax burden through proper timing and loss harvesting.
Tax Planning Strategies
Timing Strategies
- • Holding assets over 1 year for lower rates
- • Spreading gains across multiple years
- • Realizing gains in low-income years
- • Matching gains with available losses
Investment Strategies
- • Tax-efficient fund placement
- • Donating appreciated securities to charity
- • Qualified Opportunity Zone investments
- • Retirement account contributions
Recent Changes in Capital Gains Tax Law
Recent Updates
- • Inflation adjustments to tax brackets
- • Changes to NIIT thresholds
- • CARES Act NOL carryback rules
- • SECURE Act 2.0 provisions
Pending Legislation
- • Proposed increases to top rates
- • Possible changes to step-up basis
- • Discussion of wealth taxes
- • Potential reduction in exclusion amounts
Frequently Asked Questions
What is capital gains tax?
Capital gains tax is a levy on profits from selling assets that increased in value. It applies to investments like stocks, bonds, real estate (not your primary home), and collectibles. You only pay tax on the gain (sale price minus purchase price and expenses).
How are capital gains calculated?
Capital Gain = Sale Price - (Purchase Price + Improvement Costs + Selling Expenses). For investments, use the sale proceeds minus your cost basis (purchase price plus adjustments like reinvested dividends).
What's the difference between short-term and long-term capital gains?
Short-term gains apply to assets held ≤1 year and are taxed as ordinary income (10%-37%). Long-term gains apply to assets held >1 year with preferential rates (0%, 15%, or 20% based on income).
What are the 2023 capital gains tax rates?
Long-term rates: 0% ($0-$44,625 single), 15% ($44,626-$492,300), 20% ($492,301+). Short-term gains use ordinary income brackets. High earners may pay an additional 3.8% Net Investment Income Tax.
How does the calculator determine my tax rate?
The calculator uses your filing status, taxable income (including the gain), and holding period to apply the correct rates. It accounts for the progressive tax brackets and the NIIT if applicable.
What is cost basis?
Cost basis is your original investment including purchase price, commissions, and improvements (for property). It's subtracted from sale price to determine gain. Missing records? You may need to reconstruct or use default basis methods.
How are reinvested dividends handled?
Reinvested dividends increase your cost basis in the investment. Each reinvestment is treated as a new purchase at that day's price, reducing your eventual capital gain.
What is the wash sale rule?
If you sell a security at a loss and buy substantially identical securities within 30 days before/after the sale, the loss is disallowed. The calculator flags potential wash sales to prevent incorrect loss claims.
How does the calculator handle multiple lots?
When you specify multiple purchase dates/prices, the calculator can use FIFO (First-In-First-Out), LIFO, or specific identification methods to determine which shares were sold and their corresponding gains.
What is the primary home exclusion?
Single filers can exclude $250,000 ($500,000 married) of capital gains on primary home sales if you owned and lived in it 2 of last 5 years. The calculator automatically applies this when you mark a property as your primary residence.
How are capital losses treated?
Losses first offset gains dollar-for-dollar. If losses exceed gains, you can deduct $3,000 annually ($1,500 if married filing separately) against ordinary income, carrying forward remaining losses indefinitely.
What's the difference between realized and unrealized gains?
Realized gains occur when you actually sell an asset and are taxable. Unrealized gains are paper profits on unsold assets and aren't taxed. The calculator only considers realized gains from actual sales.
How does the calculator handle state taxes?
When you select your state, the calculator adds applicable state capital gains taxes. Rates vary (e.g., 0% in TX/FL, up to 13.3% in CA). Some states don't differentiate between short/long-term gains.
What is the Net Investment Income Tax (NIIT)?
A 3.8% surtax on investment income (including capital gains) for high earners (>$200k single/$250k married). The calculator automatically applies NIIT when your modified AGI exceeds these thresholds.
How are collectibles taxed?
Gains on collectibles (art, coins, metals) are taxed at a maximum 28% rate, even if held long-term. The calculator applies this special rate when you classify an asset as a collectible.
What is the step-up in basis at death?
Heirs receive assets with basis equal to fair market value at date of death, eliminating unrealized gains. The calculator can model inheritance scenarios using stepped-up basis when this option is selected.
How does the calculator handle 1031 exchanges?
For real estate investors, the calculator can defer taxes on like-kind exchanges by rolling the original basis into the new property. You must identify the replacement property within 45 days and complete the exchange within 180 days.
What are capital gain distributions from mutual funds?
Year-end distributions of fund's internal gains that are taxable to you even if you didn't sell shares. The calculator treats these as long-term gains and adds them to your total taxable amount.
How does the calculator handle employee stock options?
For ISOs, the calculator tracks bargain element (difference between exercise price and FMV) for AMT. For NSOs, it includes the spread at exercise as ordinary income before tracking subsequent gains.
What is the Medicare surtax on capital gains?
High earners (>$200k single/$250k married) pay an additional 3.8% NIIT on capital gains. The calculator automatically includes this when your modified AGI exceeds the thresholds.
How are capital gains taxed in retirement accounts?
No capital gains tax applies within traditional IRAs/401(k)s - withdrawals are taxed as ordinary income. Roth accounts are tax-free if rules are followed. The calculator excludes retirement account transactions unless withdrawn.
What is the difference between capital gains and ordinary income?
Capital gains come from asset sales and have preferential rates. Ordinary income (wages, interest) uses higher regular brackets. The calculator separates these for accurate tax calculations.
How does the calculator handle cryptocurrency?
Crypto is treated as property - sales trigger capital gains. The calculator tracks purchase price (basis), sale price, and holding period. It can handle complex scenarios like mining income or forks.
What is the qualified small business stock exclusion?
Section 1202 allows excluding 50%-100% of gains from certain small business stock held >5 years. The calculator applies this exclusion when you specify QSBS eligibility.
How are capital gains taxed for trusts?
Trusts reach the top 20% long-term rate at just $14,650 of taxable income (2023). The calculator has a separate mode for trust taxation with these compressed brackets.
What is the kiddie tax?
Unearned income (including capital gains) over $2,500 for children under 19 (or 24 if students) is taxed at trust rates. The calculator applies these special rules when you indicate the taxpayer is subject to kiddie tax.
How does the calculator handle installment sales?
For property sales where payments are received over multiple years, the calculator spreads the gain proportionally each year. It tracks remaining basis and recalculates each year's taxable portion.
What is the difference between federal and state capital gains taxes?
Federal taxes have preferential long-term rates and the NIIT. Some states tax all gains as ordinary income, some have their own rates, and some have no income tax. The calculator accounts for all scenarios.
How are capital gains taxed for non-resident aliens?
NRAs generally pay a flat 30% (or treaty rate) on US-sourced capital gains, except for real property taxed under FIRPTA. The calculator has a NRA mode with these special rules.
What is the Medicare surtax on capital gains?
High earners (>$200k single/$250k married) pay an additional 3.8% NIIT on capital gains. The calculator automatically includes this when your modified AGI exceeds the thresholds.
How does the calculator handle capital loss carryforwards?
You can input prior-year unused losses, which the calculator applies to offset current gains before using the $3,000 ordinary income deduction. It tracks remaining carryforwards for future years.
What is the difference between Section 1256 contracts and other investments?
Futures, broad-based options, and Section 1256 contracts get 60% long-term/40% short-term treatment regardless of holding period. The calculator automatically applies this blended rate when these assets are selected.
How does the calculator handle REIT investments?
REIT dividends are often non-qualified (taxed as ordinary income), while capital gains from REIT sales follow standard rules. The calculator separates these components for accurate taxation.
What is the qualified dividend tax rate?
Qualified dividends receive the same 0%/15%/20% rates as long-term capital gains. The calculator checks holding period requirements (61+ days for common stock) to determine qualification.
How does the calculator handle foreign tax credits?
When you pay foreign capital gains taxes, the calculator applies FTCs to avoid double taxation. It limits credits to the lesser of foreign taxes paid or the US tax on that income.
What is the difference between direct and indirect real estate investments?
Direct property sales can use 1031 exchanges or primary residence exclusions. REIT/real estate fund investments are treated as securities. The calculator has separate modes for each type.
How does the calculator handle AMT (Alternative Minimum Tax)?
For incentive stock options or large capital gains, the calculator runs parallel AMT calculations and shows whether you'll owe AMT (which disallows some deductions and has its own rates).
What is the capital gains treatment for precious metals?
Gold, silver, etc. are collectibles taxed at maximum 28% long-term rate. The calculator applies this rate when you classify the asset as precious metals.
How does the calculator handle inherited assets?
When you select 'inherited', the calculator uses stepped-up basis (FMV at death). For inherited IRAs, it tracks taxable distributions separately from capital gains.
What is the difference between short-against-the-box and outright sales?
Short sales are taxed when positions close, not when opened. The calculator tracks the holding period from acquisition to closing for proper rate determination.
How does the calculator handle partnership interests?
Partnership capital gains flow through to partners. The calculator can allocate gains based on ownership percentage and track each partner's basis adjustments over time.
What is the capital gains treatment for cryptocurrency staking rewards?
Staking rewards are ordinary income when received. When later sold, they're capital gains based on FMV at receipt vs sale price. The calculator tracks both events separately.
How does the calculator handle tax-loss harvesting?
You can model selling losers to offset gains. The calculator shows the net tax impact and warns about wash sales. It optimizes which lots to sell for maximum benefit.
What is the difference between covered and non-covered securities?
Brokers report cost basis for covered securities (acquired after 2011-2014). For non-covered, you must track basis yourself. The calculator helps reconstruct basis for older investments.
How does the calculator handle margin interest?
Margin interest may be deductible against investment income. The calculator factors this in when you enter interest expenses, subject to the investment interest expense limitations.
What is the capital gains treatment for Opportunity Zone investments?
OZ investments can defer and reduce capital gains if held long enough. The calculator models the 5/7/10-year benefits when you specify OZ investment details.
How does the calculator handle ESPP (Employee Stock Purchase Plan) sales?
ESPPs have bargain elements taxed as ordinary income and subsequent gains as capital gains. The calculator separates these components and tracks qualifying dispositions for preferential treatment.
What is the capital gains treatment for home office depreciation?
Depreciation recapture (up to 25% rate) applies when selling a home where you claimed home office deductions. The calculator tracks this separately from the primary residence exclusion.
How does the calculator handle Roth conversions?
Roth conversions are taxable as ordinary income in the conversion year. The calculator shows the tax impact and helps determine optimal conversion amounts considering capital gains.
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