Capital Gains

Most assets that are held for more than one year are capital assets and will be subject to capital gains when sold. When a capital asset is sold by a taxpayer, the difference between the basis in the asset and the amount it is sold for is a capital gain or a capital loss. Capital assets generally include the profit from the sale of such property as stocks, mutual-funds, and real estate. Long term-gains from the sale of collectibles are currently taxed at 28%.