How Do You Calculate Capital Gains On Short Term Investments?
• List all your capital assets, when you bought them and how much you paid for them. If you acquired capital assets without buying them (such as a bequest), list the value of the item on the day you acquired it. You may need your financial adviser to provide you with the value of shares, stocks and bonds and a real estate assessment to know the value of real estate. • Mark the assets you will have owned for more than one year as of December 31st of the tax year. These are long-term assets that the Internal Revenue Service taxes at a different rate than short-term assets. • Determine which assets you sold during the tax year. Write down the date of sale and sale price of each one. • Calculate the tax rate for the long-term assets by subtracting the purchase price from the sale price of each, adding them up, then multiplying the result by the long-term capital gains tax rate for your income bracket. • Subtract the purchase price from the sale price of the short-term assets, add them up,
