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Why and how to keep track of capital gains

When you acquire an asset for $100 and sell it for $120, the money you make from that sale is considered capital gains (which may be taxable). 

Capital gains can be reduced by deducting the capital losses that occur when a taxable asset is sold for less than the original purchase price. The total of capital gains minus any capital losses is known as the "net capital gains." - Investopedia

At Passfolio, we provide monthly capital gains reports to make reporting taxes for your offshore investments easier - see an example below:

Capital Gains Report

We’ve also partnered up with Douglas Gomes from Meu Contador to create a guide with key information about how to report taxes for your offshore investments*. You can access the complete guide here.

*Remember this information should not be considered legal or tax advice - please consult your lawyer or tax professional regarding your specific situation. Passfolio is only offered where it is legal and is not specifically directed to anyone in Brazil https://passfolio.us/legal

General rules for capital gains

Exemption Limit: If you sold up to 35,000.00 BRL (thirty five thousand reais) of stock in a given month, you are exempt from taxation regardless of your profit. However, this does not apply to interest you may earn on your investments. 

Exchange Rate Variation: If the money you used to invest abroad was earned in Brazil, you must calculate the difference between the purchase and sale price of your stock taking into account the exchange rate variation between when you purchased and sold your assets. However, if the money used to acquire assets abroad was earned in the US, you do not need to take into account the exchange rate and will pay tax only on the gain you obtained in the sale of the asset.

 

Benefits of keeping track of capital gains

Keeping track of capital gains isn’t just important for tax purposes - it also helps you understand if you’ve been making or losing money from your investments. In fact, we suggestyou keep a spreadsheet with monthly documentation of your capital gains and capital losses in order to better understand how your investments are performing.

 

How to start investing in the US today  

Sign up to Passfolio Securities today and start investing in the US with no commission fees²!


To create a Passfolio account, you just need to be at least 18 years old and submit some basic information. After submitting your information, your application will typically be reviewed and approved within one business day.


If any additional information is required pending, we'll get in touch by email. Once your account is approved, you should be able to fund your account with your local currency - as a global app, we support the following transfer methods: USD paper checks, Wire Transfers, TransferWise, Revolut, ACH, TEDs, SWIFT, SafetyPay, and SEPA. However, the transfer methods available to you will vary according to your location.

 

¹ Please see our fractional shares disclosure.

² Securities less than $5 cost $0.02/share. Please see our disclosures on other charges.


Please read important legal disclosures that apply to your relationship with Passfolio.


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