After Selling US Corporate Shares, Unveil the Truth of Capital Gains Tax and Matters Needing Attention

The Truth About Capital Gains Tax When Selling Shares of an American Company What You Need to Know

Shareholders who invest in stocks or companies in the United States may face a significant financial issue capital gains tax. Whether you're an individual investor or an institutional investor, when you sell your shares, it's crucial to understand the relevant regulations and impacts of this tax. Capital gains tax is levied on the appreciation of assets and is closely related to how long you've held the asset.

For instance, a news report in 2025 mentioned that a Chinese entrepreneur had to pay a substantial amount of capital gains tax after selling their shares in an American technology company. This not only reflects the impact of capital gains tax on investment returns but also serves as a reminder that tax costs must be fully considered when making overseas investment decisions.

According to the rules set by the Internal Revenue Service IRS, capital gains tax is divided into short-term and long-term categories. If you sell an asset within one year of holding it, it’s considered short-term capital gains; if sold after more than a year, it falls under long-term capital gains. Typically, the long-term capital gains tax rate is lower than the ordinary income tax rate, meaning the longer you hold the asset, the greater the potential tax benefit you may enjoy.

It’s worth noting that capital gains tax applies not only to stock trading. Any profit gained from the sale of assets could trigger this tax. For example, when business owners decide to sell real estate, art pieces, or even non-traditional investment products like cryptocurrencies under their names, they need to calculate and pay capital gains tax according to the corresponding rules.

For those planning to immigrate or have already relocated overseas, handling property issues within the U.S. becomes particularly important. If you no longer use an American passport for travel and wish to completely sever your tax relationship with the U.S., you’ll need to properly arrange all unsettled investment projects and related tax matters. Otherwise, even if you leave the U.S. mainland, you might still face the risk of being pursued for outstanding payments due to leftover capital gains.

In conclusion, when facing major financial events such as selling shares of an American company, always consult professional accountants or tax advisors beforehand. They can provide personalized advice based on your specific circumstances, helping you minimize unnecessary economic losses. At the same time, stay informed about the latest legal and regulatory changes to ensure your actions remain compliant. After all, in the complex international financial market environment, only by mastering sufficient knowledge can you make wise choices.