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pumear
New Member

Capital gains tax

I have a few questions.

1. Are income tax, short term capital gains tax, and long term capital gains tax all added together for a net income total?

2. If I have a combination of these three, how would the different categories be taxed?

3. For example, say I hypothetically make 100,000 income in a year, then 200,000 short term capital gains, then 200,000 long term capital gains. What would be the tax breakdown for this?

4. Would they be taxed separately or combined to a total of 500,000 and then the tax is calculated on that?

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2 Replies

Capital gains tax

I misread your post as you having a short term loss so ignore my post. Many thanks, @Anonymous   

Anonymous
Not applicable

Capital gains tax

on $500,000 of  income, the $200,000 of short-term gains would be added to the $100,000 of ordinary income and tax as ordinary income. if married filing joint the tax for the $300,000 would be about $60.300 (the taxes using the tax rate schedule),  the long-term gain would be tax at 15% and some at 20%  or about $30,600. in addition,  there would be an investment tax (form 8960) on some of the investment income this would cost another $10,500.  total estimate tax $101,400.

 

this will vary based on what the other income consists of.  if some is qualifying dividends the tax would be lower. your standard or itemized deductions were ignored. 

if single the tax would jump to over $131,000

 

 

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