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 Capital Gains Tax Forms 2022-2024

Cg1 2022-2024 Form

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What are Capital Gains? Capital gains are the profit made on an investment when that investment is finally sold. Capital gains may be realized in the very short term, after hours or days of holding an investment, or in the long term, decades after the original investment was made. Capital gains are not the income you earn as an employee or from your own business, but rather are due to the increase in value of your investment. For this reason, capital gains are taxed differently than regular income. How Do You Calculate Capital Gains? Capital gains are calculated by subtracting the basis (your original investment) from the final sale price. For example, if you purchased an investment property for $100,000 (the basis) and later sold it for $600,000 (the sale price), your capital gain would be $500,000. Short-Term vs Long-Term Capital Gains Short-term capital gains are any capital gains made from an investment which was held for less than one year. For example, if you purchased stock in a

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