A capital gain is a profit from investment in a capital asset. A capital gain may be subject to what is commonly know as a capital gain tax.
Capital Gain Tax
In the United States, capital gains are often subject to taxation at two different levels: federal and states.
Federal
The IRC imposes two different types of capital gain taxes: 1) long-term capital gain and 2) short-term capital gain.
State
Some states levy taxes upon capital gains while others do not. In order to learn more about the capital gain tax of a particular state, please consult the responsible taxing authority.
This brief overview of some important considerations associated with capital gains and capital gains taxes is by no means comprehensive. Always seek the advice of a competent professional when making important financial and legal decisions.
