What is the capital gains tax?

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Andrew Goldman

Andrew Goldman has been writing for over 20 years and investing for the past 10 years. He currently writes about personal finance and investing for Wealthsimple. Andrew's past work has been published in The New York Times Magazine, Bloomberg Businessweek, New York Magazine and Wired. Television appearances include NBC's Today show as well as Fox News. Andrew holds a Bachelor of Arts (English) from the University of Texas. He and his wife Robin live in Westport, Connecticut with their two boys and a Bedlington terrier. In his spare time, he hosts “The Originals" podcast.

The capital gains tax is simply the tax assessed by the IRS when you sell something for more than you bought it. It’s often associated with the sale of stocks, but it really applies to anything — the sale of a car, the mint-condition copy of Action Comics #1 you discovered among Pop Pop’s effects.

There are lots of smaller issues to learn about capital gains taxes — like why home sales are often exempt, how the rate assessed depends on how long you’ve held onto any particular asset, and exactly when you’re required to pay it. You can find many of the answers to these burning questions here on Wealthsimple’s site.

Last Updated December 19, 2017

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