<topic sku="core" tNum="289122" author="" xmlns="x-schema:hhTopicSchema.xml"><index><title>Learn about capital gains tax</title><category>report</category><klink type="cncpt">Tell me about capital gains tax</klink></index>
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<p>When you sell an investment that has increased in value, you may need to pay <glossary tNum="286960">capital gains</glossary> tax on any profit. The amount of tax you pay depends on your income tax bracket and how long you've owned the investment.</p>
<ul>
<li><emph>Short-term investments.</emph> Investments you own for one year or less are taxed as short-term investments. You pay taxes on any profits from the sale at your ordinary income tax rate.</li>
<li><emph>Long-term investments.</emph> Investments you own for more than one year are taxed as long-term investments, which are taxed at a more favorable long-term capital gains rate. The rate is 20% for most taxpayers, or 10% for taxpayers in the 15% tax bracket.</li>
</ul>
<p>You can use the Capital Gains Estimator to see the tax consequences of selling an investment.</p>
<p><emph>Note </emph> For even more powerful capital gains estimation tools, import your Microsoft Money investment information file to GainsKeeper. GainsKeeper makes it simple for you to use your Money file to complete your IRS Schedule D, and offers precise capital gains calculations that automatically adjust for wash sales, stock splits, and mergers and spin-offs. Plus, you'll have access to tools and suggestions that could help save money on your taxes. All Microsoft Money users receive a free 30-day trial for GainsKeeper and discounts on an annual subscription. Money Premium and Money Small Business users get a whole year free!</p>
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<tease>Learn more about GainsKeeper</tease>
<reveal>
<ol>
<li>On the <emph>Investing</emph> menu, click <emph>Portfolio</emph>.</li>
<li>In the left pane on the <emph>Other Tasks</emph> list, click <emph>Capital gains tracking for Schedule D</emph>.</li>
</ol>
</reveal>
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<footer>
<extend>
<tease>How do I see a report of my potential capital gains taxes?</tease>
<reveal>
<ol>
<li>On the <emph>Reports</emph> menu, click <emph>Reports Gallery</emph>.</li>
<li>In the left pane, click <frgmnt sku="biz"><emph>Personal</emph>, and then click </frgmnt><emph>What I Have</emph>.</li>
<li>Double-click <emph>Net Worth Less Capital Gains Tax</emph> or <emph>Net Worth over Time Less Capital Gains Tax</emph>.</li>
</ol>
</reveal>
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<tease>What's the difference between the Capital Gains Estimator and GainsKeeper?</tease>
<reveal>
<p>The Capital Gains Estimator is a tool in Money that helps you understand the tax consequences of potential or actual investment sales. GainsKeeper, a Microsoft partner, is a Web service that provides subscribers with detailed capital gains tracking, automatic completion of IRS Schedule D, and tools and analyses for managing capital gains and losses. You can use your Money investment information in GainsKeeper. </p>
