Estimate US capital gains tax on investments. Calculates short-term vs long-term rates, net investment income tax, and after-tax profit.
Net gain = Sale proceeds − Purchase cost − Allowable costs − Selling costs
Taxable gain = Net gain − Annual exempt allowance
CGT owed = Taxable gain × Applicable CGT rate
CGT rates vary by jurisdiction: UK (2024) — 18–24% on most assets; US — 0%, 15%, or 20% for long-term gains (held 1+ years) depending on income; Australia — 50% discount on gains for assets held 1+ years, then taxed at marginal rate; Canada — 50% of gain included in income and taxed at marginal rate.
Worked example: Asset purchased for 50,000 (plus 2,000 in costs), sold for 120,000 (less 3,000 selling costs). Net gain = 120,000 − 50,000 − 2,000 − 3,000 = 65,000. Less annual exempt allowance 3,000 = 62,000 taxable. At 20% CGT rate: 12,400 owed.