Capital gains tax: when selling investments costs you

5 chapters·17 min·action plan·mastery check

Chapter 1 of 5

The idea

Selling at a profit can create a tax bill — unless you plan where and when you sell.

What it is

A capital gain is the profit when you sell something (shares, funds, a second property) for more than you paid. Many countries give a yearly tax-free allowance, and gains inside tax-free accounts or retirement accounts usually aren't taxed at all. Rules and rates differ by country.

Predict first

You bought shares for $10,000 and sold for $16,000 outside any tax-free account. What's the taxable gain before allowances?

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