![]() ![]() If you hold it one year or less, your capital gain or loss is short-term. Generally, if you hold the asset for more than one year before you dispose of it, your capital gain or loss is long-term. To correctly arrive at your net capital gain or loss, capital gains and losses are classified as long-term or short-term. ![]() Losses from the sale of personal-use property, such as your home or car, aren't tax deductible. ![]() You have a capital loss if you sell the asset for less than your adjusted basis. You have a capital gain if you sell the asset for more than your adjusted basis. ![]() Generally, an asset's basis is its cost to the owner, but if you received the asset as a gift or inheritance, refer to Publication 551, Basis of Assets for information about your basis. When you sell a capital asset, the difference between the adjusted basis in the asset and the amount you realized from the sale is a capital gain or a capital loss. Examples include a home, personal-use items like household furnishings, and stocks or bonds held as investments. Almost everything you own and use for personal or investment purposes is a capital asset. ![]()
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