![]() ![]() Instead of falling into your ordinary income tax bracket, the tax rate for these gains is between 0% and 20%. Long-term Capital Gain TaxĪ long-term capital gain plays by different rules. That means your short-term capital gain, like the rest of your income, could be taxed between 10% and 37% depending on your income. Your ordinary income tax bracket is determined by how much total taxable income you make in a year. When your capital gain is considered short-term, you’re taxed based on your ordinary income tax rate. The next step is to understand how that information impacts your tax rate. To make sure you have accurate information, the IRS recommends counting “from the day after the day you acquired the asset up to and including the day you disposed of the asset.” Understanding Your Investment Tax Rateīy now, you’ve likely determined whether you have a capital gain - and, if so, whether it’s short-term or long-term. ![]()
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