Q

What is the capital gains tax?

A

It's the tax assessed by the IRA on any profits you've made.

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.

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