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Federal Tax Rate Questions

What are federal tax rates?

Every individual may be subjected to different kinds of taxes in the United States. Some of these taxes include income tax, property tax, sales tax, etc. Federal tax is one such kind of tax that is levied on individuals. The rates at which individuals have to pay federal tax may differ from person to person depending on his/her income and many other factors. Answered below by the Experts are a few questions about federal tax rates that are most commonly asked.

Where can a person get information about federal tax rates?

An individual may be able to get information about different federal tax rates on the following link:
http://www.smbiz.com/sbrl001.html

What are the rates for federal taxes for a nonprofit corporation?

In most situations, a nonprofit organization may not have to pay taxes even if it has capital gains.

What are the tax rates for long term real estate capital gains?

The tax rates for capital gains on long term real estate may be 15% currently.

Where can an individual find the federal tax rates for a C corporation?

The tax rates for a C corporation may be found at the following links:
http://www.irs.gov/pub/irs-pdf/i1120.pdf and
http://www.smbiz.com/sbrl001.html

At what rate will an individual be taxed if they were to sell property within a year of purchase in North Dakota?

An individual may be taxed on short term capital gain if he/she sells property within a year of its purchase. The capital gain may be calculated by subtracting the purchase price and selling expenses from the selling price. The rate at which the capital gain will be taxed will depend on the individual’s income, filing status and deductions. This individual may be subject to up to 35% of federal tax rates. Also, the individual can be subject to state tax rates between 1.84% and 4.86%.

How would a self-employed individual’s tax rates be affected if his/her income went up by $40,000 in a year in California?

An individual’s tax may depend on his/her total income, deductions and credits. If his/her income increased by $40,000 in a year, he/she may have to pay 15.3% as self employment tax, 25% as federal tax and 9.3% of California state tax. Hence, the individual may pay a total of 49.6%. Only the net business income of the individual’s may be taxed. Hence, if he/she wants to, he/she may reduce his/her tax liability by planning his/her business expenses and increasing his/her contributions to retirement plans.

Are federal tax rates fixed for all income brackets?

Federal tax rates are not fixed for all income brackets. They may range from 0 to 35% depending on an individual’s total income.

What are the different kinds of federal rates on capital gains?

There are 4 types of federal rates on capital gains. These rates are given below:
• 28% tax that is paid on collectibles and small business stock without the 1202 exclusions
• 25% federal taxes that are paid on a part of the capital gains that are made due to the depreciation of the value of real property
• 15% capital gain rate which is the most common federal rate that applies to tax payers. This includes everything that does not come under real property or collectibles and small business
• 5% rate that is charged to people whose normal tax rate on their 1040 is less than 25%. This means that their overall taxable income may be less than $7550 if they are filing it alone and less than $15,100 if they are filing it as a married couple jointly.

Your income can have an impact on the amount of tax that you may have to pay each year. The federal tax rates may also differ depending on your income. You need to understand what these rates for your particular state are and how they are calculated in order to know how much you would be paying as taxes. This will help you plan your expenses and finances so that you do not end up losing a lot of money in the form of taxes. You may seek the help of an Expert if you have trouble understanding or determining federal tax rates.
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