Capital Gains Tax Law

Capital Gains Tax (CGT) is a tax on the profit you make from selling certain assets, like stocks or real estate. If you buy an asset for one price and sell it for a higher price, the difference is your capital gain and is subject to tax. There are different rates depending on how long you held the asset—short-term gains, from assets held for a year or less, are usually taxed at higher ordinary income rates, while long-term gains, from assets held longer than a year, often face lower tax rates. Some exemptions may apply.