Getting Started with Capital Gains Tax

Contributed article in our business series from “Thirty Six Months”. Enjoy! – Kimberly

We’ve covered a lot of investment related topics here at Thirty Six Months. In the previous post, I talked about how to exit an investment. Here, however, we’re going to focus on the capital gains tax. According to Villanova University and its MSA program online, capital gains tax is the tax you pay on the gain in investment. The tax is paid when you choose to sell the investment and pocket the gain. If you’re investing in the stock market, for instance, the profit you make when you sell your shares is taxed.

The amount of capital gains tax you pay doesn’t really depend on the amount of profit you make. Instead, you are taxed based on your personal income. In other words, the capital gains tax rate is based on your existing income tax rate.

The Global Taxes infographic by Villanova University has more information on capital gains tax and other types of tax.

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