The amount of income could push above the zero percent capital gain rate into the 15 % bracket. (biggerpockets.com)
But now there are four capital gains rates in effect: 0 percent for those in the lowest two brackets, 15 percent for middle - income taxpayers, 18.8 percent for those in the 15 percent bracket who also owe the 3.8 percent Medicare tax, and 23.8 percent for high - income earners who pay the 20 percent capital gains rate plus the 3.8 percent Medicare tax. (cnbc.com)
Carl gets $ 65, and because he held the shares for long enough he's entitled to a 20 percent capital gains rate on that earnings (assuming he makes enough money doing other things to be in the top bracket). (vox.com)