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Like everything else in the great American tax system, it's complicated,
Capital gains and losses are classified as long term if the asset was held for more than one year, and short term if held for a year or less. Taxpayers in the 10 and 15 percent tax brackets pay no tax on long-term gains on most assets; taxpayers in the 25 to 35 percent income tax brackets face a 15 percent rate on long-term capital gains. For those in the top 39.6 percent bracket, the rate is 20 percent. Short-term capital gains are taxed at the same rate as ordinary income. There also is a 3.8 percent tax on net investment income for single taxpayers with modified adjusted gross income above $200,000 ($250,000 for married couples filing jointly). Capital gains in some cases face an effective tax rates above the 23.8 percent statutory rate because of phaseouts in the tax code. Reference: http://www.taxpolicycenter.org/briefing-book/how-are-capital-gains-taxed
If you have a large enough long term capital gain, to push your total income into the 25% bracket, some of your gain will not be taxed (effectively taxed at 0%) and some will be taxed at 15%.
The "wash sale" rule only applies to capital losses. It prevents people from claiming a deductible loss on a stock sale and then quickly buying the stock back.
So, when do the brackets start and end? See: https://taxfoundation.org/2017-tax-brackets/ Taxable income is total income less adjustments, deductions and exemptions.
Like everything else in the great American tax system, it's complicated,
Capital gains and losses are classified as long term if the asset was held for more than one year, and short term if held for a year or less. Taxpayers in the 10 and 15 percent tax brackets pay no tax on long-term gains on most assets; taxpayers in the 25 to 35 percent income tax brackets face a 15 percent rate on long-term capital gains. For those in the top 39.6 percent bracket, the rate is 20 percent. Short-term capital gains are taxed at the same rate as ordinary income. There also is a 3.8 percent tax on net investment income for single taxpayers with modified adjusted gross income above $200,000 ($250,000 for married couples filing jointly). Capital gains in some cases face an effective tax rates above the 23.8 percent statutory rate because of phaseouts in the tax code. Reference: http://www.taxpolicycenter.org/briefing-book/how-are-capital-gains-taxed
If you have a large enough long term capital gain, to push your total income into the 25% bracket, some of your gain will not be taxed (effectively taxed at 0%) and some will be taxed at 15%.
The "wash sale" rule only applies to capital losses. It prevents people from claiming a deductible loss on a stock sale and then quickly buying the stock back.
So, when do the brackets start and end? See: https://taxfoundation.org/2017-tax-brackets/ Taxable income is total income less adjustments, deductions and exemptions.
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