Capital Gains Tax Calculator 2025

Short-term gains apply to assets held one year or less and are taxed at ordinary income rates (10-37%). Long-term gains apply to assets held more than one year and receive preferential rates of 0%, 15%, or 20% depending on your taxable income. The holding period is calculated from the day after purchase to the sale date.

The NIIT is an additional 3.8% tax on investment income (including capital gains) for high earners. It applies when your Modified AGI exceeds $200,000 (single), $250,000 (MFJ), or $125,000 (MFS). The tax is calculated on the lesser of net investment income or the amount by which MAGI exceeds the threshold.

The IRS treats cryptocurrency as property. Taxable events include: selling crypto for cash, trading one crypto for another, using crypto to buy goods/services, and receiving crypto as income. Each transaction requires calculating gain/loss based on your cost basis. The same short-term/long-term rules apply based on holding period.

The wash sale rule prevents you from claiming a tax loss if you purchase substantially identical securities within 30 days before or after the sale. This includes stocks, options, and even purchases in IRAs. The disallowed loss is added to the cost basis of the replacement shares, deferring (not eliminating) the tax benefit.

Yes. Capital losses first offset gains of the same type (short-term losses offset short-term gains, long-term offset long-term). Remaining losses offset gains of the other type. If net losses exceed gains, you can deduct up to $3,000 against ordinary income. Excess losses carry forward indefinitely to future years.

For 2025, you pay 0% on long-term gains if your taxable income (including the gains) stays below $48,350 (single) or $96,700 (MFJ). This is valuable for retirees, those in gap years, or anyone with a low-income year. You can strategically realize gains to fill up the 0% bracket.

Cost basis is your original investment in an asset for tax purposes. It includes: purchase price, commissions/fees, and for real estate, closing costs and improvements. For stocks, you can use FIFO (first in, first out), specific identification, or average cost (mutual funds only). Brokerages report cost basis on Form 1099-B.

Real estate gains follow the same rules as other capital assets. However, primary residence sales may qualify for the $250,000/$500,000 exclusion if you owned and lived in the home for 2+ of the past 5 years. Investment property is subject to depreciation recapture (taxed at up to 25%) in addition to capital gains.

A 1031 exchange (like-kind exchange) allows you to defer capital gains tax on investment real estate by reinvesting proceeds into similar property. Strict rules apply: you must identify replacement property within 45 days and close within 180 days. You must use a qualified intermediary - cannot touch the funds yourself.

Most states tax capital gains as ordinary income. Nine states have no income tax (AK, FL, NV, NH, SD, TN, TX, WA, WY). California taxes capital gains up to 13.3%. Some states offer preferential rates for long-term gains. Check your state's specific rules as they vary significantly.

When you inherit assets, your cost basis is "stepped up" to the fair market value at the date of death. This eliminates all unrealized gains during the decedent's lifetime. For example, if someone bought stock for $10,000 and it's worth $100,000 at death, your basis is $100,000 - not $10,000.

Report capital gains on Schedule D using information from Form 8949. Your broker provides Form 1099-B with cost basis information. Short-term gains go in Part I, long-term in Part II. The net gain flows to Form 1040 line 7. Tax software handles this automatically when you import your 1099-B.

Qualified dividends are taxed at the same preferential rates as long-term capital gains (0%, 15%, or 20%). Ordinary (non-qualified) dividends are taxed as ordinary income. To be qualified, dividends must be from US corporations or qualified foreign corporations, and you must meet holding period requirements.

Tax-loss harvesting involves selling investments at a loss to offset gains and reduce taxes. You can then reinvest in similar (but not identical) securities to maintain your portfolio allocation. This is especially valuable at year-end but can be done anytime. Watch for wash sale rules.

Yes. If you have net capital losses, you can deduct up to $3,000 per year against ordinary income ($1,500 if married filing separately). Losses exceeding $3,000 carry forward to future years indefinitely until fully used. This makes losses valuable even without gains to offset.

Collectibles (art, antiques, coins, precious metals, stamps, wine) are taxed at a maximum rate of 28% for long-term gains - higher than the standard 20% maximum. Short-term gains on collectibles are taxed as ordinary income. NFTs may be classified as collectibles depending on their nature.

When selling depreciable property (like rental real estate), depreciation you've claimed is "recaptured" and taxed at up to 25%. This is separate from capital gains on appreciation. For example, if you claimed $50,000 in depreciation, that amount is taxed at up to 25% even if your overall gain qualifies for the 15% rate.

No. Gains within traditional IRAs, 401(k)s, and similar accounts are not taxed until withdrawal, and then they're taxed as ordinary income (not capital gains). Roth accounts grow tax-free - qualified withdrawals are completely tax-free. This is why tax-advantaged accounts are so valuable for investing.

Qualified Opportunity Zones (QOZ) are designated low-income areas where investing capital gains can provide tax benefits. Benefits include: deferral of original gain until 2026, reduction of 10% if held 5+ years, and elimination of tax on QOZ appreciation if held 10+ years. Requires investment through a Qualified Opportunity Fund.

For ISOs (Incentive Stock Options), there's no tax at exercise (though AMT may apply). When you sell, gain is taxed as capital gain if you hold 1+ year from exercise and 2+ years from grant. For NSOs (Non-Qualified Stock Options), the spread at exercise is ordinary income. Subsequent appreciation is capital gain based on holding period.