The raise moves you into a higher tax bracket, like from 15 % to 25 %, which raises your long
term capital gains rate from 0 % to 15 %.
I had asked a previous question about moving money between mutual funds without taxation due to the 0 %
capital gains rate for those in low tax brackets.
For instance, if your income over the next few years pushes you into a
higher capital gains rate, you might have an opportunity to save on taxes.
If you sell them in the right year, you could realize capital gains of almost $ 100,000 and perhaps more — and pay a 0 %
federal capital gains rate.
However, if your investment meets certain requirements, your dividends may be considered qualified and are subject to the long - term
capital gains rate instead.
If you sell a security within a year of buying it, short - term
capital gains rates apply — and these match your ordinary federal income tax rate.
She'd also
raise capital gains rates on profits stemming from short - term trading and she'd limit the ability of the super wealthy to avail themselves of tax advantage retirement programs.
I
believe capital gains rates are now at the right level, and I'm opposed to any further across - the - board reduction in those rates at this time.
So I guess the question for me is, do I think being taxed later at the
future capital gains rate will be better than being taxed now at my current income tax rate?
If you have gains that are going to be taxed at the 0 %
capital gains rate anyway, then using losses to offset those gains doesn't make sense.
Ultimately, the fact that «other» ordinary income can drive up long - term
capital gains rates doesn't necessarily mean it's bad to harvest long - term capital gains.
In addition, be aware that you'll have to pay any taxes that you owe on the annuity at your ordinary income - tax rate, not the
preferable capital gains rate.
In addition, the child tax credit expires and
capital gains rates go back to 20 percent from zero to 15 percent this year.
He's called for raising the top
capital gains rate on some wealthy couples and consolidating education tax breaks, although some of those ideas have already faced intense opposition.
This assumption isn't valid for options exercised in 2010 because it is widely expected that the
top capital gains rate will revert to 20 % in 2011.
But if you take your capital gain in 2003 it will swallow up the capital loss and you won't get the benefit of the
favorable capital gain rate.
- People with high incomes will be subject to a higher
capital gains rate of 20 %, plus an extra 3.8 % Net Investment Income Tax (not shown here) as part of the new healthcare law.
Most of the earnings are tax - deferred until the units are actually sold; and then, they're taxed at the lower
capital gains rate rather than at the higher personal income rate.
I have worked with investors for 60 years and I have yet to see anyone — not even
when capital gains rates were 39.9 percent in 1976 - 77 — shy away from a sensible investment because of the tax rate on the potential gain.
Additionally, the American Taxpayer Relief Act raised the top long - term
capital gains rate from 15 % to 20 % for those with a taxable income of $ 400,000 for single individuals and $ 450,000 for married couples filing jointly.
Others maintain that the cumulative effect of harvesting losses year after year can inadvertently subject investors to a higher
capital gains rate later on, which negates any savings and then some.
Hatch's measure would reinstate a 50 percent exclusion for capital gains income and would effectively reduce the maximum
individual capital gains rate from its current level of 28 percent to no more than 19.8 percent.
By selling their relatively high - cost, actively managed mutual funds, he was able to take advantage of the zero percent
capital gains rate while also getting them into lower cost index funds for the future, which typically generate lower capital gains distributions, he says.
Phrases with «capital gains rate»