Determine the asset’s cost basis
Add purchase price, fees, commissions, and improvement costs to the cost basis
Determine the sale price
Subtract selling fees and commissions from the sale price
Calculate the capital gain or loss by subtracting the cost basis from the net sale price
Identify whether the gain is short-term or long-term based on how long the asset was held
Apply the appropriate capital gains tax rate
Include any applicable state or local capital gains taxes
Subtract any eligible capital losses to offset gains
Multiply the taxable gain by the applicable tax rate to find the tax owed