However, capital gains tax is only paid when an asset is sold, as opposed to property taxes, which must be paid every year a property is owned. Your tax rate, the cost of purchasing and maintaining the asset, the length of time you’ve owned it, and your marital status are all taken into account when calculating your capital gains tax.If you have a brokerage account, you will probably get a Form 1099-B in January of the following year with a breakdown of all the asset sales you made in your account throughout each tax year. Basic information required to calculate your capital gains taxes is included on the 1099-B form, giving a brief description of each asset sold as well as the dates it was bought and sold, the transaction’s cost basis, and the proceeds from the sale. Then, using Schedule D, also known as Form 1040, and, if necessary, Form 8949, taxpayers compute and submit their capital gains tax. The cost of an asset, how long you’ve had it, your income tax bracket, and your filing status all affect how much capital gains tax you owe.Only Washington has a capital gains tax, which is only applied to wealthy incomes, out of the nine states that do not tax wage and salary income. State and local capital gains vary from state to state. Investors frequently have to pay both federal and state capital gains taxes. The cost of an asset, how long you’ve had it, your income tax bracket, and your filing status all affect how much capital gains tax you owe.Only Washington has a capital gains tax, which is only applied to wealthy incomes, out of the nine states that do not tax wage and salary income. State and local capital gains vary from state to state.
