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Ask Chad EA, CDFA®, CFP® Your Own Question
Chad EA, CDFA®, CFP®
Chad EA, CDFA®, CFP®, CERTIFIED FINANCIAL PLANNER ®, Professional
Category: Tax
Satisfied Customers: 3055
Experience:  IRS Licensed Enrolled Agent, CDFA ® CFP ®, MBA
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What are the taxes rates 2016 for term gains in irrevocable

This answer was rated:

what are the taxes rates 2016 for long term gains in irrevocable trusts
JA: Estate laws vary by state. What state are you in?
Customer: Michigan
JA: What documents or supporting evidence do you have?
Customer: i have a irrevocable trust that was written 1988 by my husband who died in 1992. I am co-trusted with a bank, trust department
JA: Anything else you want the lawyer to know before I connect you?
Customer: I am 81 years old and what the trust co-trustee to have more cash in the trust and more bonds, but the trust would have to pay federal tax on long term gains, so that is why i want to know the tax rates.

Welcome to JustAnswer! My name is ***** ***** I will be able to assist you today.

For 2017 if taxable income in a trust exceeds $12,500 the effective tax rate would be 20%.

For income between $0 and $2,500 the long term capital gains rate is 0%

If the irrevocable trust adjusted gross income is between $2,500 and $12,500 the effective long term capital gains tax would be 15%

Therefore the long term capital gains rates are 0%, 15% or 20% depending on the adjusted gross income of the trust

I would be happy to answer any follow up questions you may have.

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