What is Capital Gain?

Capital gain is the profit you make when you sell something for more than you paid for it. You bought a stock for R$ 20 and sold it for R$ 30? Your capital gain is R$ 10. This profit can be taxed by the Income Tax.

Where it applies

  • Sale of stocks (above R$ 20,000/month)
  • Sale of real estate
  • Sale of cryptocurrencies (above R$ 35,000/month)
  • Sale of vehicles with profit
  • Sale of any asset above its purchase value

Tax rates

Stocks

  • Normal operations: 15% on the profit
  • Day trade: 20% on the profit
  • Exemption: sales up to R$ 20,000/month

Real Estate

  • 15% on capital gain
  • Exemption: single property up to R$ 440,000 (if no other property was sold in the last 5 years)
  • Exemption: if the amount is used to buy another property within 180 days

Cryptocurrencies

  • 15% on profit from sales above R$ 35,000/month

How to calculate?

Capital Gain = Selling Price - Purchase Price - Costs

Costs include: brokerage, fees, renovations (real estate), etc.

Important tip

Keep a record of all purchases (brokerage notes, contracts). Without proof of the purchase price, the Revenue Service may consider the cost as zero — and charge tax on the total sale value.