Apps like Robinhood make it easy for everyone to play the stock market. If you’re a retail investor who made money last year buying and selling stocks, you may owe capital gains tax when you file your tax return this year. If you lost money, you may be able to deduct that loss and reduce your income.
Here’s what you need to know about capital gains tax:
Capital Gains And Losses Defined
A capital gain or loss is the difference between your basis – the amount you paid for the asset – and the amount you receive when you sell an asset. All capital gains (or losses) must be reported on your tax return.
Losses Limited To $3,000