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Posted On: 07/27/2020 7:16:08 PM
Post# of 87095
While capital gains may be taxed at a different rate, they are still included in your adjusted gross income, or AGI, and thus can affect your tax bracket.
For example, say you file single and generally have an AGI of $35,000 (income from work) which puts you in the 12 percent tax bracket. But this year you sell an investment with a capital gain of $5,000. That may change your AGI to $40,000—and push you into the next tax bracket—22 percent.
Generally capital gains taxes (on investments held over a year) have a maximum taxation rate of 23.8%, whereas income from work can be taxed as high as 37%.
For more info consult your tax accountant.
If you don’t have one you’ll need one soon with UNVC!!!
For example, say you file single and generally have an AGI of $35,000 (income from work) which puts you in the 12 percent tax bracket. But this year you sell an investment with a capital gain of $5,000. That may change your AGI to $40,000—and push you into the next tax bracket—22 percent.
Generally capital gains taxes (on investments held over a year) have a maximum taxation rate of 23.8%, whereas income from work can be taxed as high as 37%.
For more info consult your tax accountant.
If you don’t have one you’ll need one soon with UNVC!!!
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