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Lane, JD, CFP, MBA, CRPS
Category: Tax
Satisfied Customers: 12489
Experience:  Law Degree, specialization in Tax Law and Corporate Law, CFP and MBA, Providing Financial & Tax advice since 1986
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# How much money to I pay gains stocks, If I am on

### Customer Question

How much money to I pay for capital gains stocks, If I am on disability?
Submitted: 2 years ago.
Category: Tax
Expert:  Lane replied 2 years ago.
Hi,
You MAY not have a taxable gain at all.
Gain = sales price MINUS your basis (investment IN the stock).
Then Capital gains (if you held the stocks for a year or more so that they're long term) are taxed at ..
*0% if taxable income falls in the 10% or 15% marginal tax brackets
*15% if taxable income falls in the 25%, 28%, 33%, or 35% marginal tax brackets
*20% if taxable income falls in the 39.6% marginal tax bracket
So, if you can tell me a little more about how MUCH gain you had and what your other income is (how much and whether it's Social Security Disability or not)
I can give you a more specific answer.
Let me know ...
I'll be here.
lane
Customer: replied 2 years ago.
I get \$1,500 a month on disability..Are you saying that if I hold the stocks for over a year, I pay zero dollars in capital gains..Example.. I have 4,000 shares of a stock that I bought for \$19 a share. Let's say it sold it for \$50 a share.I would pay zero dollars in capital gains, if it was long term? Second with the same example how much would I pay in capital gains, if it was short term, how much would I pay in capital gains?
Expert:  Lane replied 2 years ago.
No the capital gain IS taxable income so that (4000 x 50) - (4000 x 19) = 124000 gain IS a part of your taxable income putting PART of that money into the 25% bracket... therefor taxed at 15% capital gain rate.
FIrst only (124000 - 10300), 113700, is taxable because of the standard deduction and the personal exemption.
And then you don't hit the 25% ORDINARY income tax bracket (which means that SOME of the money WILL be taxable at 15% gains rate) until your taxable income gets to 37450.
See this: