[Verse 1] When you buy and sell your stocks and bonds Real estate and crypto too Section twelve twenty-one defines What capital assets mean to you But inventory from your trade And business property you use Are excluded from this game Different tax rules you must choose [Chorus] Capital gains, capital pains Short-term's ordinary, long-term's the key Hold it more than one whole year Zero fifteen twenty rates so clear Three thousand dollars max loss per year Wash sale thirty days beware Capital gains, learn the game Tax advantages you can claim [Verse 2] Short-term means a year or less Taxed like wages that you earn But hold for more than twelve months time Lower rates you're gonna learn Zero percent if you're low income Fifteen for the middle class Twenty percent for high earners That's how long-term gains will pass [Chorus] Capital gains, capital pains Short-term's ordinary, long-term's the key Hold it more than one whole year Zero fifteen twenty rates so clear Three thousand dollars max loss per year Wash sale thirty days beware Capital gains, learn the game Tax advantages you can claim [Bridge] Collectibles at twenty-eight Art and coins and precious gold Unrecaptured twelve fifty gain Twenty-five percent takes hold Small business stock qualified Section twelve oh two's your friend Hundred times your basis gain Could be tax-free in the end [Verse 3] When your losses exceed your gains Three thousand you can use each year Against your ordinary income Carry forward what's left here But watch out for the wash sale rule Ten ninety-one will make you pay Buy back within thirty days Your loss gets washed away [Chorus] Capital gains, capital pains Short-term's ordinary, long-term's the key Hold it more than one whole year Zero fifteen twenty rates so clear Three thousand dollars max loss per year Wash sale thirty days beware Capital gains, learn the game Tax advantages you can claim [Outro] From twelve twenty-one to QSBS Know your holding periods well Capital gains can save you tax If you learn these rules to tell
← 1 Basis and Amount Realized | 3 Recapture and Characterization →