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TAX PROFILE

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ASSETS SOLD

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Live Tax Calculation

Total Gain/Loss
$0
Total Tax
$0
Short-Term
$0
Long-Term
$0

๐Ÿ“‹ Breakdown by Asset

Asset Gain/Loss Type Tax
Enter asset details to see breakdown

๐Ÿ’ฐ Tax Breakdown

Short-Term Tax โ–ถ $0
Long-Term Tax โ–ถ $0
Total Tax $0
Effective Tax Rate 0%

2025 Capital Gains Tax Rates Reference

๐Ÿ“‰ Short-Term Capital Gains

Assets held for 1 year or less are taxed at your ordinary income tax rate (10% - 37% depending on your tax bracket).

๐Ÿ“ˆ Long-Term Capital Gains

Assets held for more than 1 year qualify for preferential tax rates: 0%, 15%, or 20% depending on your taxable income.

2025 Long-Term Capital Gains Thresholds

Rate Single Married Filing Jointly Head of Household
0% Up to $48,350 Up to $96,700 Up to $64,750
15% $48,351 - $533,400 $96,701 - $600,050 $64,751 - $566,700
20% Over $533,400 Over $600,050 Over $566,700
Disclaimer: This calculator provides estimates for educational purposes only and should not be considered tax advice. Tax calculations can vary based on individual circumstances, state taxes, deductions, and other factors. Always consult with a qualified tax professional for personalized advice.

๐Ÿ“– How This Calculator Works

My Capital Gains Tax Calculator helps you estimate the federal taxes you'll owe when selling investments, real estate, or other assets. Here's how to use it:

Step 1: Enter Your Tax Info

Select your filing status and enter your annual taxable income BEFORE capital gains. This determines your starting tax bracket.

Step 2: Add Your Assets

Enter each asset you sold with its cost basis (what you paid), sale price (what you received), and how long you held it.

Step 3: Review Results

See your total gains/losses, applicable tax rates, and whether the Net Investment Income Tax (NIIT) applies to you.

๐Ÿ”ข What the Calculator Computes

  • Short-term vs. long-term classification - Assets held โ‰ค1 year are short-term; >1 year are long-term
  • Loss netting - Losses offset gains of the same type first, then cross-offset
  • Bracket stacking - Gains are "stacked" on top of your ordinary income to determine rates
  • NIIT calculation - The 3.8% surtax applies when your income exceeds thresholds

๐ŸŽฏ When Should I Use This Calculator?

Use my capital gains calculator in these common situations:

๐Ÿ“ˆ Selling Stocks or ETFs

Before selling shares, calculate your potential tax bill. Consider whether waiting to reach long-term status saves money.

๐Ÿช™ Trading Cryptocurrency

Crypto-to-crypto trades are taxable events. Use this to estimate taxes before converting Bitcoin, Ethereum, or other coins.

๐Ÿ  Selling Real Estate

Investment property sales trigger capital gains. Primary residence may qualify for exclusion ($250K single/$500K married).

๐Ÿ“Š Year-End Tax Planning

Estimate your total capital gains tax before December 31 to make strategic decisions about selling or holding.

โฐ Best Time to Use This Calculator

  • Before selling - Estimate the tax impact before you commit to a sale
  • Q4 tax planning - Review gains/losses to decide on tax-loss harvesting
  • After year-end - Calculate what you'll owe before filing your return
  • Quarterly estimates - If you have significant gains, calculate estimated tax payments

๐Ÿ“š Key Capital Gains Tax Concepts

Short-Term vs. Long-Term

The holding period is the critical factor in determining your tax rate:

  • Short-term (โ‰ค1 year): Taxed as ordinary income at rates from 10% to 37%
  • Long-term (>1 year): Preferential rates of 0%, 15%, or 20% depending on income

๐Ÿ’ฐ Cost Basis

Your cost basis is what you originally paid for the asset, plus:

  • Purchase commissions and transaction fees
  • Improvements (for real estate)
  • Reinvested dividends (for stocks/mutual funds)

๐Ÿ“Š Net Investment Income Tax (NIIT)

An additional 3.8% tax applies to investment income (including capital gains) when your Modified Adjusted Gross Income exceeds:

Single / Head of Household

$200,000 threshold

Married Filing Jointly

$250,000 threshold

Married Filing Separately

$125,000 threshold

๐Ÿ“‰ Capital Loss Deduction

If your losses exceed your gains, you can deduct up to $3,000 per year ($1,500 if married filing separately) against ordinary income. Excess losses carry forward to future years.

โš ๏ธ Common Capital Gains Mistakes to Avoid

โŒ Selling Too Soon

Selling one day before the 1-year mark means paying ordinary income rates (up to 37%) instead of long-term rates (max 20%). Wait for long-term treatment when possible.

โŒ Ignoring Cost Basis

Forgetting to include fees, commissions, and improvements in your cost basis means overpaying taxes. Keep detailed records of all acquisition costs.

โŒ Missing the Wash Sale Rule

Selling at a loss and repurchasing the same or "substantially identical" security within 30 days disallows the loss. Plan your trades carefully.

โŒ Not Harvesting Losses

You can sell losing positions to offset gains. This "tax-loss harvesting" strategy can significantly reduce your tax bill each year.

๐Ÿ  Real Estate Specific Mistakes

  • Missing the primary residence exclusion - You may exclude $250K ($500K married) if you lived there 2 of the last 5 years
  • Forgetting depreciation recapture - Rental property depreciation is recaptured at 25% when you sell
  • Not using 1031 exchange - Investment property can be exchanged tax-free for like-kind property

๐Ÿ’ก Capital Gains Tax Strategies

๐ŸŽฏ Tax-Loss Harvesting

Sell investments at a loss to offset gains. You can deduct $3,000 in net losses against ordinary income annually, with unlimited carryforward.

โณ Hold for Long-Term

Waiting until you've held an asset for more than one year can drop your rate from 37% to as low as 0% depending on your income level.

๐ŸŽ Gift Appreciated Assets

Gifting stocks to family members in lower tax brackets can result in lower overall family taxes. Consider annual gift exclusion limits.

๐Ÿ“… Time Your Sales

If your income varies year to year, sell assets in lower-income years to potentially qualify for the 0% long-term rate.

๐Ÿข Advanced Strategies

  • Qualified Opportunity Zones - Defer and potentially reduce capital gains by investing in designated opportunity zones
  • 1031 Like-Kind Exchange - Swap investment real estate without triggering immediate tax
  • Installment Sales - Spread gains over multiple years by receiving payment over time
  • Donor Advised Funds - Donate appreciated assets to charity for a deduction and avoid capital gains
  • QSBS Exclusion - Qualified Small Business Stock may exclude up to $10M in gains

๐Ÿ”— Helpful Resources

๐Ÿ“‹ IRS Resources

๐Ÿ“ˆ Investment Tax Resources

๐Ÿ”ง Related Calculators

1099 vs W-2 Calculator

Compare self-employment income to traditional employment.

Quarterly Tax Calculator

Estimate quarterly tax payments for your capital gains.

Stock Option Calculator

Calculate the value and tax implications of stock options.

โ“ Frequently Asked Questions

Short-term capital gains apply to assets held for one year or less and are taxed at your ordinary income tax rate (10% to 37% in 2025).

Long-term capital gains apply to assets held for more than one year and receive preferential tax rates of 0%, 15%, or 20% depending on your taxable income. The holding period starts the day after you acquire the asset and ends on the day you sell it.

The NIIT is an additional 3.8% tax on investment income, including capital gains, for high earners. It applies when your Modified Adjusted Gross Income (MAGI) exceeds $200,000 for single filers, $250,000 for married filing jointly, or $125,000 for married filing separately.

The tax applies to the lesser of your net investment income OR the amount by which your MAGI exceeds the threshold.

Your cost basis is generally what you paid for the asset, including:

  • Purchase price
  • Commissions and transaction fees
  • Transfer taxes
  • For real estate: closing costs, improvements, and assessments
  • For stocks: reinvested dividends (if in a DRIP plan)

For inherited assets, the basis is typically "stepped up" to the fair market value at the date of death.

Yes, the IRS treats cryptocurrency as property, so selling crypto for cash, trading crypto for another cryptocurrency, or using crypto to purchase goods/services are all taxable events subject to capital gains tax.

The same short-term and long-term rules apply based on how long you held the crypto before disposing of it.

Yes, capital losses can offset capital gains dollar-for-dollar. First, short-term losses offset short-term gains, and long-term losses offset long-term gains. Then, any remaining losses can offset gains of the other type.

If your total losses exceed your total gains, you can deduct up to $3,000 ($1,500 if married filing separately) against ordinary income. Any excess loss carries forward to future tax years indefinitely.

For 2025, you may pay 0% on long-term capital gains if your taxable income (including the gains) falls below these thresholds:

  • Single: $48,350
  • Married Filing Jointly: $96,700
  • Head of Household: $64,750

This can be a powerful strategy for retirees or those in low-income years to realize gains tax-free.

You may exclude up to $250,000 of gain ($500,000 for married couples filing jointly) when selling your primary residence if:

  • You owned the home for at least 2 of the last 5 years
  • You used it as your primary residence for at least 2 of the last 5 years
  • You haven't used this exclusion in the past 2 years

Any gain exceeding the exclusion amount is taxable as a capital gain.

The wash sale rule prevents you from claiming a tax loss if you purchase a "substantially identical" security within 30 days before or after selling at a loss. This includes:

  • Buying the same stock
  • Buying an option or contract to acquire the stock
  • Buying substantially identical securities in an IRA

The disallowed loss is added to the cost basis of the replacement shares, so you'll eventually recognize it when you sell those shares.

๐Ÿ“ž Schedule a Tax Consultation

Have complex capital gains questions? Need help with tax planning for your investments? Schedule a consultation to discuss your specific situation.