When you sell property for more than you paid to buy it, the profit is known as “capital gain.” Like ordinary income, the capital gain you receive is subject to taxes, but at the federal level the rates are different from those on your earnings from work or from interest and dividends. The capital gains tax rate depends on your overall taxable income, the length of time you’ve held the property, and whether you took offsetting losses to charge against some or all of your gain.
Click here to read Christina T. Vidoli’s article.
