Question 1

How long do I need to hold a stock to get the lower capital gains rate?

Accepted Answer

You must hold the asset for more than one year (366+ days) to qualify for long-term capital gains rates. The difference is substantial: short-term gains are taxed as ordinary income (up to 37%), while long-term gains are taxed at 0%, 15%, or 20% depending on your income. On a $50,000 gain, the difference between short-term (22% bracket) and long-term (15%) is $3,500 in tax savings — just by waiting a few more months.

Question 2

How does the $250,000 home sale exclusion work in 2026?

Accepted Answer

If you've lived in your primary residence for at least 2 of the last 5 years, you can exclude $250,000 of gain from taxes (single) or $500,000 (married filing jointly). Example: You bought for $300,000, sell for $600,000 — that's a $300,000 gain. As a married couple, the entire gain is excluded. You don't even need to report it. The exclusion can be used once every 2 years. Depreciation you claimed if you ever rented the property is not excluded and is taxed at up to 25%.

Question 3

What is the Net Investment Income Tax (NIIT) and do I owe it?

Accepted Answer

The NIIT is an additional 3.8% tax on investment income (including capital gains) for high earners. It applies if your modified AGI exceeds $200,000 (single) or $250,000 (married joint) AND you have net investment income. This means your effective long-term capital gains rate is 18.8% (15%+3.8%) or 23.8% (20%+3.8%) at high income levels. The NIIT applies to dividends, interest, rental income, and capital gains — but NOT to wages or self-employment income.

Question 4

How is crypto taxed in 2026?

Accepted Answer

Cryptocurrency is treated as property by the IRS. Every sale, trade, or use to purchase goods is a taxable event. Hold for over a year → long-term capital gains rates (0%/15%/20%). Hold for under a year → short-term rates (ordinary income, up to 37%). Mining income is taxed as ordinary income at receipt. Staking rewards are taxed as ordinary income. Crypto-to-crypto trades are taxable events — you can't defer by swapping Bitcoin for Ethereum. The IRS requires reporting on Form 8949.

Question 5

Can I offset capital gains with capital losses?

Accepted Answer

Yes — capital losses offset capital gains dollar-for-dollar. If you have $30,000 in gains and $10,000 in losses, you only pay tax on $20,000. If your losses exceed gains, you can deduct up to $3,000 of net capital losses against ordinary income per year, carrying forward the remainder indefinitely. Tax-loss harvesting — deliberately selling losing positions to offset gains — is a legitimate strategy used by sophisticated investors to reduce their annual tax bill.

Rate	Single	Married Filing Jointly	Head of Household
0%	Up to $48,350	Up to $96,700	Up to $64,750
15%	$48,350 – $533,400	$96,700 – $600,050	$64,750 – $566,700
20%	Over $533,400	Over $600,050	Over $566,700

Capital Gains Tax Calculator

What You Should Know

Charts & Projections

Tax Breakdown

State Comparison

Lifetime Wealth Projection

Overview

Short-Term vs Long-Term Capital Gains: The Tax Difference

2026 Long-Term Capital Gains Tax Rates

The Depreciation Recapture Trap

Tax-Loss Harvesting: Turning Losses Into Tax Savings

Frequently Asked Questions

Sources & Methodology

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