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tax on capital gains

Why are the capital gains included as regular income?

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2 Replies
MayaD
Expert Alumni

tax on capital gains

short-term gains do not benefit from any special tax rates. They are subject to taxation as ordinary income

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tax on capital gains

many items are based on adjusted gross income and AGI by law includes both short-term and long-term capital gains (LTCG). however, there is a preferred tax rate applied to LTCG. Turbotax has a worksheet that computes this tax.

 

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