Personal income tax on income from property transfer
Capital gains tax refers to the tax imposed on profit made from the sale of an asset, such as property or stocks. It is calculated by subtracting the original cost of the asset (known as the "cost basis") from the sale price, and taxing the resulting profit. The rate of capital gains tax varies depending on multiple factors, such as the length of time the asset was held before being sold, the type of asset, and the taxpayer's income level. In some cases, capital gains tax can be minimized or deferred through certain tax strategies.
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