Capital Gains Tax Explained
As you can imagine, South Carolina earns most of its tax revenue from a personal income tax and sales tax. Capital gains tax is a form of sales tax, except solely on capital assets. Capital assets include stocks, businesses, land parcels, homes, personal items and more.
An individual's capital gains tax liability is contingent on his or her personal income tax. There are a couple forms of capital gains tax depending on how long you own the capital asset before selling it; short-term capital gains tax, long-term capital gains tax, and if you live in the residence for two or more years you don’t have to pay any capital gains tax at all. For more information on capital gains tax, or any real estate related questions, please feel free to contact me directly.
Written by: Robert Judy