Capital Gains

klgl22

2007-06-12 21:06

Can anyone tell me the gains tax for 50K? I was told it was 10K or 20%. Is that accurate?
Kecia

finniganps

2007-06-13 09:20

It is dependent on your income, but the HIGHEST current LONG TERM capital gains rate (held > 1 year is 15%. If you held it less then a year it is your ordinary income tax rate. If the rates are not extended/changed by Congress, the LT rate will go back to 20% after 2008.

[ Edited by finniganps on Date 06/13/2007 ]

klgl22

2007-06-13 12:26

Thank you

jimandlacy

2007-06-13 15:19

Don't forget that some states charge Cap gains tax. VA is 5%.
Jim

finniganps

2007-06-13 15:21

Yeah, CA doesn't have a lower capital gains tax rate - you pay at ordinary rates. That is pretty normal in many states.

NewKidInTown3

2007-08-27 10:09

Quote:

On 2007-06-13 09:20, finniganps wrote:
It is dependent on your income, but the HIGHEST current LONG TERM capital gains rate (held > 1 year is 15%. If you held it less then a year it is your ordinary income tax rate. If the rates are not extended/changed by Congress, the LT rate will go back to 20% after 2008.

On May 17, 2006, President Bush signed into law the Tax Increase Prevention and Reconciliation Act of 2005 (TIPRA).

The preferential dividend and capital gains tax cuts established under the Jobs Growth Tax Relief and Reconciliation Act of 2003 are extended another two years under TIPRA, and are now scheduled to expire at the close of 2010.

Under these rules, the current maximum tax rate applicable to long-term capital gains and qualified dividends is 15 percent. This maximum rate is reduced to 5 percent for taxpayers in the 10 percent and 15 percent income tax brackets. In 2008, and now extended for 2009 and 2010, the preferential tax rate for those in the 10 percent and 15 percent tax brackets drops to 0 percent.

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