You'll be at the top capital gains rate of 20%
Capital gains are based on income tax rate but the gain amount is use to calculate that
Then thanks to our president, we have the new 3.8% Medicare tax that is applied as well to this in that capital gains tax bracket
so worst case, you're looking at 23.8%
If my income tax rate is near zero, does that make a difference?
So sorry, but the capital gain amount itself is used
Hang on and I can get you some docuentation if you like
Okay, I heard that there was a tiered rate.
Their is for income taxes... see this ... AND let me check the regs for application
Here's an excellent, more readable, overview ... now, let me get you the IRS regs themselves :http://taxes.about.com/od/capitalgains/a/CapitalGainsTax_2.htm
Okay, so my hopes that I was below the 15% income tax would mean that my capital gains would be zero, is not possible.
No no,,, so sorry, but the gain itself is used as the income in the calculation
Here's an article that deals with this aspect .. botXXXXX XXXXXne is that once you go through the calculation you'll see that it INCLUDES the GAINS as INCOME but forces out any ORDINARY income taxation but the capital gains rate is applied to all of the capital gains income
Thank you for your help & have a good day.
]you'e very welcome
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This was excellent!
Thank you so much!
Is there any truth to this article ? http://www.bankrate.com/finance/taxes/no-capital-gains-due-for-some-investors-1.aspx
Is there any truth to this article?
http://www.bankrate.com/finance/taxes/no-capital-gains-due-for-some-investors-1.aspx Is there any truth to this article?
Didnt mean to send that many times
sOK, Just a sec...let me look at it ... I think it only applies to those in the lower tax brackets where the rate becomes zero ... What you have to remember is that you tax bracket is calculated on taxable income ... and capital gains income IS taxable income ... you're is a very atypical case, where the gain is so high ... but again, let me look
Yes, they don; really cover your situation ... note that the two main headings are cashing in on "lower capital gains taxes" and "Limited to lower incomes"
You do may a much lower RATE (becase it's the 20% rather than the 39.6%) BUt capital gains IS a part of taxable income, to figure your bracket
Note the second sentence, " Capital gains are generally included in taxable income but are often taxed at a lower rate." in this article: http://www.taxpolicycenter.org/briefing-book/key-elements/capital-gains/how-taxed.cfm
Thanks again. I think that is it for now.