Capital gains tax applies to the profit from selling or disposing of certain assets. Common assets subject to this tax include stocks, bonds, mutual funds, real estate, and collectables such as art, antiques, and precious metals. Cryptocurrencies are also taxed as property and fall under capital gains regulations.

Personal-use property, like cars or furniture, is generally exempt unless sold at a profit. However, business-related assets and investments typically qualify. Special rules may apply to assets such as primary residences, where exclusions may reduce taxable gains.

The taxable amount depends on the asset's holding period, its purchase price , and the sale price. Capital gains tax rates differ for short-term and long-term holdings, emphasizing the importance of strategic planning.