Capital Gains Tax Laws

Capital gains tax laws are difficult to grasp. We aim to make them at least a little easier to understand.

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Capital gains tax laws: the basics

When you sell an investment you either make a profit - a capital gain - or you lose money - a captial loss.

Capital gains and losses must be reported on Schedule D.

Note: Undistributed capital gains are listed on Form 2439, Notice to Shareholders of Undistributed Capital Gains.

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Next: how different capital gains tax rates are assessed.

Related IRS publications

Get more information about capital gains tax laws from IRS Publication 550.

For a paper return, fill out Schedule D and possibly Schedule D-1. If you file electronically, this will be completed for you automatically..

Note: you will need an Adobe Acrobat Reader to view these publications, which you can get here.