Solved: For MFJ,if are taxable income exceeds 488.850.do all our capital gains become taxed at 20%?(even the original 15% sales?)

For MFJ,if are taxable income exceeds 488.850.do all our capital gains become taxed at 20%?(even the original 15% sales?)

posted

No, the brackets stack. Assume you have $200,000 of regular income and $400,000 of capital gains. The first $288K of capital gains is taxed at 15% and the rest is taxed at 20%.

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No, the brackets stack. Assume you have $200,000 of regular income and $400,000 of capital gains. The first $288K of capital gains is taxed at 15% and the rest is taxed at 20%.