The short answer
If you sell something you held one year or less, the gain is short-term and taxed like your wages. Held more than a year, it's long-term and taxed at 0%, 15% or 20%, depending on your income. Florida adds no state tax on top.
Last reviewed: October 2026
This page explains how taxes and reporting work. It isn't a recommendation to buy, sell or hold any investment.
Figuring the gain
Gain = what you sold it for, minus selling costs, minus your basis (usually what you paid, plus improvements for property). Your broker reports sales on Form 1099-B, and they go on Form 8949 and Schedule D.
Losses
- Losses offset gains first.
- Up to $3,000 of net loss a year ($1,500 married filing separately) can offset other income.
- The rest carries forward to future years.
- Losses on personal items, like your car or your home, aren't deductible.
Wash sales
If you sell a stock or fund at a loss and buy the same or nearly the same one within 30 days before or after, the loss is put off and added to the basis of the new shares. Your 1099-B shows it as "wash sale loss disallowed."
Other things to know
- Higher earners may also owe a 3.8% net investment income tax.
- Collectibles like coins and art have a higher long-term rate, up to 28%.
- Inherited assets are always treated as long-term. See step-up in basis.
Official source: IRS Topic 409, Capital gains and losses.
More Tax Answers
See all of our plain-English tax answers, or book Free Tax Office Hours to ask your own question.
Disclaimer: This page is general information, not tax advice. Every situation is different, and tax rules change. Reading this page doesn't make you a client.