Who understands Capital Gains? The term is used in financial circles and it sounds serious and important. What does it mean?
Well Capital Gain are your earnings from investments like stocks in the stock market or buying and selling real estate, home or buildings. These earnings are taxed differently under special rules for Capital Gains. It is complicated. The web and your buddies may talk about capital gains tax rates being “only” 15% or 20% but there is so much fine print that goes into the actual calculation.
So, my goal is not to make you all capital gains expert but rather to say that if you are about to buy or sell any kind of asset, please meet with your tax consultant and hash out the exact details of capital gains taxes and how they will affect you. And if at first it makes no sense, keep asking and asking until you get it.
This is important stuff. It is your money. Understand how it works.