When Do You Pay Capital Gains Tax and How Does It Work?

Man working on taxes
Syda Productions / Shutterstock.com

Editor’s Note: This story originally appeared on The Penny Hoarder. When you sell an investment for a profit, the Internal Revenue Service wants its cut. Capital gains are the profits you make when you sell a stock, mutual fund or other taxable asset. You’ll owe capital gains taxes if that investment increased in value while you owned it. How much you owe depends on a couple of factors…