Accurate Accounting. Creative Thinking.

Boatner & Pugh - Certified Public Accountants

3 weeks ago

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Boatner & Pugh - Certified Public Accountants

2 months ago

𝗖𝗮𝗽𝗶𝘁𝗮𝗹 𝗚𝗮𝗶𝗻𝘀 𝗧𝗮𝘅 𝗥𝗮𝘁𝗲𝘀

It's important to note that the tax rates on capital gains from the sale of stocks, bonds, cryptocurrency, real estate, and other capital assets aren't necessarily the same as the tax rates for wages, interest, retirement account withdrawals, and other "ordinary" income. When determining the tax on capital gains, the rates that apply generally depend on how long you held the capital asset before selling it.
If you hold a capital asset for one year or less, any gain from the sale is considered short-term capital gain and taxed using the rates for ordinary income listed above. However, if you hold the asset for more than one year, the gain is treated as long-term capital gain and taxed a lower rate – either 0%, 15%, or 20%. As with the ordinary tax rates and brackets, the specific long-term capital gains tax rate that applies depends on your taxable income. However, the long-term capital gain brackets are set up so that you'll generally pay tax at a lower rate than if the ordinary tax rates and brackets were applied (see below).

𝗢𝗿𝗱𝗶𝗻𝗮𝗿𝘆 𝗜𝗻𝗰𝗼𝗺𝗲 𝗧𝗮𝘅 𝗥𝗮𝘁𝗲𝘀 ... See MoreSee Less