Video narration
Does the whole amount from selling your bike count as a capital gain? Not quite. Imagine you bought it for two hundred dollars and later sold it for two hundred and sixty. The two hundred and sixty dollars is what you received, but it isn't all gain. Your capital gain is the amount above what the bike cost you: two hundred and sixty minus two hundred, or sixty dollars. That's the gain: the extra above your cost. And keep that gain separate from tax. The sixty dollars is not automatically the amount of tax you owe; whether tax applies depends on the relevant rules and your circumstances. Fees or other adjustments can also affect a real calculation. No. If your bike sells for more than you paid, the capital gain is just the extra-not the full price.