Capital Gains Tax 202456

Capital Gains Tax 202456. When you realize a capital gain, the proceeds are considered taxable income. The tumult over the changes in the capital gains tax regime has been disproportionate, since relatively few taxpayers actually declare capital gains income in the first place.

Removes indexation, lowers tax to 12.5%, changes holding period to 24 months. Capital gains arise when there is a transfer of a capital asset, and we have discussed the meaning of a capital asset, the types of capital assets, and the period of holding that determine the nature of capital gains.