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Lev, Tax Advisor
Category: Tax
Satisfied Customers: 29655
Experience:  Taxes, Immigration, Labor Relations
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How much Capital Gain Tax do you pay on 500 million dollars?

Resolved Question:

How much Capital Gain Tax would I pay on $500 million dollars, if I’m an inventor?

Submitted: 6 years ago.
Category: Tax
Expert:  Lev replied 6 years ago.

Hi and welcome to Just Answer!
Capital gain - it is t is a long term - means you owned the asset more than a year before it was sold - is taxed at reduced rate - up to 15%.
However - if you will have large long term capital gain - you will be subject of AMT tax - and your tax rate might be up to 28%.
Please be aware that self-created assets - such as inventions - are taxed at a regular tax rate - up to 35% - not as capital gains. However - if you have a patent on your invention - it is treated as a capital asset.
The transfer of a patent by an individual is treated as a sale or exchange of a capital asset held longer than 1 year. This applies even if the payments for the patent are made periodically during the transferee's use or are contingent on the productivity, use, or disposition of the patent.
Let me know if you need any help or clarification.

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