How does capital gains tax work?
Quick Answer
You owe capital gains tax when you sell an asset for more than you paid. Long-term gains (held over 1 year) are taxed at 0%, 15%, or 20% based on income. Short-term gains (held one year or less) are taxed at your ordinary income rate.
Warren Team
Updated October 13, 2025
36
Warren Team
Updated October 13, 2025
36
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The information provided is for educational purposes only and should not be considered as personalized financial advice. Warren is a registered investment advisor. Past performance does not guarantee future results. Please consult with a qualified financial advisor before making investment decisions.
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