Determine the asset you sold and whether it is a capital asset
Find the purchase price, plus any buying costs
Find the sale price, minus any selling costs
Calculate your capital gain or loss by subtracting total cost from net sale proceeds
Check how long you owned the asset
Classify the gain as short-term or long-term based on holding period
Apply the correct tax rate for your tax bracket and gain type
Include any special rules for collectibles, real estate, business assets, or inherited assets
Subtract any capital losses from capital gains
Apply any annual capital loss deduction limits if applicable
Report the net gain on the correct tax forms
Add the gain to your taxable income if required
Use tax software, IRS worksheets, or a tax professional to confirm the final amount