It really all depends on the investor's adjusted g
Post# of 56324
Posted On: 04/24/2014 7:32:36 AM
It really all depends on the investor's adjusted gross income (AGI). If you happen to be young and just starting out with a small AGI the short term capital gains and long tern capital gains tax in the US could very well be one and the same.....JMHO
For me, Uncle Obama and the tax thugs rape me ever year on April 15th.
The Internal Revenue Service taxes different kinds of income at different rates. Capital gains, such as profits from a stock sale, are generally taxed at a more favorable rate than your salary or wages. However, not all capital gains are treated equally. The tax rate can vary dramatically between short-term and long-term gains. Generating gains in a retirement account, such as a 401(k) plan or an IRA, can also affect your tax rate.
Short-term capital gains
Short-term capital gains do not benefit from any special tax rate – they are taxed at the same rate as your ordinary income. For 2013, ordinary tax rates ranged from 10 percent to 39.6 percent, depending on your total taxable income.
If you sell an asset you have held for one year or less, any profit you make is considered a short-term capital gain. The clock begins ticking from the day after you acquire the asset up to and including the day you sell it.
Long-term capital gains
If you can manage to hold your assets for longer than a year, you can benefit from a reduced tax rate on your profits. For 2013, the long-term capital gains tax rates are 0, 15, and 20 percent for most taxpayers. If your ordinary tax rate is already less than 15 percent, you could qualify for the zero percent long-term capital gains rate. For high-income taxpayers, the capital gains rate could save as much as 19.6 percent off the ordinary income rate.
For me, Uncle Obama and the tax thugs rape me ever year on April 15th.
The Internal Revenue Service taxes different kinds of income at different rates. Capital gains, such as profits from a stock sale, are generally taxed at a more favorable rate than your salary or wages. However, not all capital gains are treated equally. The tax rate can vary dramatically between short-term and long-term gains. Generating gains in a retirement account, such as a 401(k) plan or an IRA, can also affect your tax rate.
Short-term capital gains
Short-term capital gains do not benefit from any special tax rate – they are taxed at the same rate as your ordinary income. For 2013, ordinary tax rates ranged from 10 percent to 39.6 percent, depending on your total taxable income.
If you sell an asset you have held for one year or less, any profit you make is considered a short-term capital gain. The clock begins ticking from the day after you acquire the asset up to and including the day you sell it.
Long-term capital gains
If you can manage to hold your assets for longer than a year, you can benefit from a reduced tax rate on your profits. For 2013, the long-term capital gains tax rates are 0, 15, and 20 percent for most taxpayers. If your ordinary tax rate is already less than 15 percent, you could qualify for the zero percent long-term capital gains rate. For high-income taxpayers, the capital gains rate could save as much as 19.6 percent off the ordinary income rate.
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