What's a capital gain or a capital loss?
A capital gain occurs when you sell a capital asset for more than what you paid for it.
A capital loss occurs when you sell a capital asset for less than what you paid for it. Most property is considered a capital asset, except these:
- Inventory held for sale to customers
- Depreciable business property
- Real property used in a trade or business
- Creative property like a copyright, literary work, musical, and so on
- Accounts or notes receivable
- Supplies used in a trade or business
Learn more about Form 8690 and the IRS net investment income tax from the tax experts at H&R Block.
Learn more about tax exempt dividends and get tax answers at H&R Block.
What are stock splits? Learn more about stock splits and their cost basis from the tax experts at H&R Block.
Have you ever thought about investing in a Cayman Islands tax haven? Before opening an account, or making adjustments to an already existing account, review these tax tips.