Good morning. If you are in the 10% marginal income tax rate, you will pay no capital gains tax on the sale of your investment. No worries.
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The information given here is not legal advice. As all states have different intricacies in their laws, the information given is general only. This communication does not establish an attorney-client relationship with you. I hope this answer has been helpful to you.
In 2008 a change occured for those in the 10% or 15% tax bracket. To qualify for this capital gains tax break your income must be below $32,550.00 if you are filing single and less than $65,100.00 if you are married. The new tax rate will be zero for long term capital gains and short term capital gains.
I disagree. If you have a net short term capital gain and also a net long-term capital gain, the short term capital gain would be taxed at your ordinary income tax rate of 10% while the long-term capital gain will be taxed at 0% (assuming your gains when added to your other taxable income do not put you into a greater than 15% ordinary income tax bracket).
From IRS Website: "If you have a net capital gain, that gain may be taxed at a lower tax rate than the ordinary income tax rates. The term "net capital gain" means the amount by which your net long-term capital gain for the year is more than the sum of your net short-term capital loss and any long-term capital loss carried over from the previous year."
For the exact computation of income tax including capital gain effects, use the worsheet on page D-10 of 2009 Instruction 1040 Schedule D
References: IRC §1(h) and IRC §1222