Short term capital gain налог

Опубликовано: 16.05.2024

В разных странах разные законы, где-то более схожие, где-то совсем непохожие, так что общий шаблон не существует.

Под приростом капитала обычно подразумевается рост стоимости доли в бизнесе, но в некоторых странах туда попадают еще дивиденды с акций, доходы от банковских депозитов и роялти.

Доход от биржевых спекуляций обычно проходит просто как доход.

09 января 2018, 00:12
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09 января 2018, 00:13
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09 января 2018, 00:18
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09 января 2018, 00:23
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Денис Маршал, если языковой барьер, то да. Но в любой стране мира есть русскоязычная диаспора, а у нее — обычно форум в интернете, нагуглить легко.

А там уже можно задать вопрос людям + там обычно есть и русскоязычные спецы по налогам либо можно найти их контакты. Для первичного понимания сути вопроса этой инфы за глаза и она как правило обходится бесплатно.

09 января 2018, 00:49
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09 января 2018, 00:16
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09 января 2018, 00:25
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AlexGood, я имел в виду то обстоятельство, что на конец отчетного периода у юр. лица доход от операций с производными.
Этот доход должен быть преобразован либо в уплату дивидендов, либо в нераспределенную прибыль, которая увеличивает размер Пассивов, то есть тот самый капитал.
У нас два фактора: доход, который может / не может облагаться налогом и налог на рост Пассивов.
Ну, а дальше изучение НК разных всяких стран.
Меня один банкир склоняет к Сингапуру — Гонконгу.

09 января 2018, 16:00
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Денис Маршал, это все от вашего понимания мироустройства зависит. Если вы считаете, что платить не надо практически ничего, то путь «пока» через оффшор без всяких налогов на капитал. Еще пока хороший вариант — канада и счет в сингапуре.
Там официально прописано, что предприятие типа не канадское, хотя и в канаде находится. Ну, счет в Канаде не откроют к сож, или надо там искать друга канадского… Но в Сингапуре — хороший вариант.
Все эти европы — ( банки) вертятся куда фюлгер покажет. А вектор все чаще не туда.
Оффшорные банки — так пара закрылась недавно… понятно, что их как транзитные надо использовать, и малыми дозами — но это же гемор. Ну и дорого там.
все же тренд такой, что надо думать о нормальной компании ( может группе компаний). Пока та же Болгария, с несложной и недорогой бухгалтерией. это офиц лицо/агент — и пока есть возможность — основной рабочий инструмент — какое ниб LP в Канаде. ( Все же Ирландия уже не то — Соседка проводит явно последовательную политику на закручивание гаек) в чем Канада не замешана.
Ну а когда и «Канады» прикроют — тогда останется чистое предприятие со всеми налогами, но явно божескими по нашим меркам, с нормальной бухгалтерией, с историей и всеми европейскими прелестями. Времена простых решений уже прошли, да.

11 января 2018, 09:14
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Денис Маршал, Вы же шли по правильному пути.
Зачем вам торговать от имени жителя сша.
Открываете контору, где не знают о термине «прирост капитала» и от нее открываете счет в сша.
далее заполняете форму W8BEN — и вы не являетесь плательщиком налогов в США. ( Кроме налога с дивидендов, но вам пока я так понял это не грозит :)
Да, пройти там проверку Фатки та еще задача. Особенно, если понимать, что прийдется ( или не прийдется) подавать у нас по закону о КИК и как этого избежать :(
Ну, кто ищет.
Ниже — в комменте — еще есть варианты с совсем белыми конторами а ля Чехия или там Болгария Венгрия — но здесь надо уточнить про налог с прироста капитала ( Хотя я думаю, что это можно и объехать — просто пока не было необходимости).

09 января 2018, 15:26
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09 января 2018, 01:17
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09 января 2018, 01:38
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09 января 2018, 04:27
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09 января 2018, 06:48
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Это вопрос для полуторачасовой лекции, посему тезисно главное по поводу налогов в U.S (касательно капитала, по состоянию на 30 декабря 2017).

— мы используем прогрессивную систему налогов (Taxable Income Bracket). Годовой Доход от:

10% рейт $0 to $9,325 = 10% без дополнительных платежей

15% рейт $9,325 to $37,950 = $932.50 + 15% от превышения
25% рейт $37,950 to $91,900 = $5,226.25 + 25% от превышения $37,950
28% рейт $91,900 to $191,650 = $18,713.75 + 28% от превышения $91,900
33% рейт $191,650 to $416,700 = $46,643.75 + 33% от превышения $191,650
35% рейт $416,700 to $418,400 = $120,910.25 + 35% от превышения $416,700
39.6% рейт $418,400 и выше = $121,505.25 + 39.6% от превышения $418,400

— Capital Gain (доход) делится на две категории:

Short-Term – доход, полученный в течение года (включительно)
Long-Term – доход, полученный в срок, превышающий календарный год

ABC акция куплена за $10 – продана за $15 через 350 дней = Short-Term Доход
ABC акция куплена за $10 – продана за $15 через 370 дней = Long-Term Доход

— Налоги.

Если вы получили Short-Term Доход, налоги начисляются согласно прогрессивной ставке (рейт) без изменений

Если вы получили Long-Term Доход, налоги начисляются следующим образом:

10% рейт = 0% налогов на Capital Gain (Доход от продажи акции, актива)

When your investment rises in value, there’s usually a tax implication

When you sell a valuable asset such as real estate or stock for more than you purchased it, you end up with a capital gain. As with other types of financial gains, the Internal Revenue Service (IRS) expects you to pay taxes on this profit. The capital gains tax rate you’ll pay depends on a couple of factors, including whether it’s a short-term or long-term financial gain and your taxable income.

Short-Term vs. Long-Term Capital Gains

A capital gain is the profit you earn from selling an asset for more than you paid for it. These gains are subject to capital gains taxes. Capital gains are taxed depending on how long you held the asset before sellin it.

A short-term capital gain occurs when you hold an asset for less than one year and then sell for a profit.

Let’s say you buy stock in your favorite company. A few months later, the stock’s price goes up, and you decide to sell your shares to lock in your gains. Because you’ve held the stock for less than one year, the money you make is considered a short-term capital gain.

A long-term capital gain occurs in cases where you sell for a profit after holding an asset for more than one year. If you had purchased that same stock of your favorite company but held onto your shares for a few years rather than a few months, then selling for a profit would result in a long-term capital gain.

A common example of when you might pay long-term capital gains taxes (or not pay them, depending on your income) would be the case of buy-and-hold investing. People who use this strategy often put their money into investments such as index funds or exchange-traded funds (ETFs) and then hold them for long periods, often many years. When you ultimately sell your investments, any profits you’ve made could be subject to long-term capital gains.

How Capital Gains Are Calculated

Capital gains tax is paid on the difference between an asset’s adjusted basis and the amount you sell it for. In most cases, the adjusted basis simply refers to the amount an item costs you. For example, if you purchase a share of stock for $50, your basis is $50 plus any fees or commissions you paid.

Let’s say you bought that $50 share of stock and paid $1.25 in fees. Your adjusted basis would be $51.25. Now suppose that one year later, you sold that same share of stock for $70. Your capital gain is the difference between $51.25 and $70, which is equal to $18.75. You’d paid taxes on the $18.75.

2020-2021 Capital Gains Tax Rates

Long-term capital gains taxes apply when you sell an asset at a profit after holding it for more than one year. The tax rate on these gains ranges from 0% to 20%, depending on your annual taxable income.

As of Feb. 26, 2021, the IRS still had not yet released an updated version of Publication 550, the information used for investment income and expenses, including capital gains and losses.

Single taxpayers and those married and filing separately won’t pay capital gains taxes if their income was $40,000 or less in 2020, and $40,400 in 2021, according to tax preparer eFile. The threshold is slightly higher for heads of household and twice as much for married couples filing jointly. For tax year 2020, only single people who made more than $441,450, and married couples that earned $496,601 or more will pay the highest capital gains tax rate.

Long-Term Capital Gains Tax Rates for Tax Year 2020

Capital Gains Tax Rate	Taxable Income, Single	Taxable Income, Married Filing Separately	Taxable Income, Head of Household	Taxable Income, Married Filing Jointly
0%	Up to $40,000	Up to $40,000	Up to $53,600	Up to $80,000
15%	$40,001 to $441,450	$40,001 to $248,300	$53,601 to $496,050	$80,001 to $496,600
20%	$441,451 or more	$248,301 or more	$496,051 or more	$496,601 or more

Long-Term Capital Gains Tax Rates for Tax Year 2021

Capital Gains Tax Rate	Taxable Income, Single	Taxable Income, Married Filing Separately	Taxable Income, Head of Household	Taxable Income, Married Filing Jointly
0%	Up to $40,400	$40,400	Up to $54,100	Up to $80,800
15%	$40,401 to $445,850	$40,401 to $250,800	$54,101 to $473,750	$80,801 to $501,600
20%	$445,851 or more	$250,801 or more	$473,751 or more	$501,601 or more

Short-Term Capital Gains Tax

A short-term capital gain tax applies when you sell an asset after holding it for less than one year. Unlike long-term capital gains, short-term capital gains are taxed as ordinary, or regular, income. As a result, you can expect to pay taxes on these gains at the same rate you’d pay in income taxes. Deending on how much you earn, you could pay anywhere from 10% to 37% on these gains.

Investors who may find themselves paying short-term capital gains taxes include day traders who buy and sell shares throughout the day in an effort to time the market.

Suppose you decided to try your hand at day trading and make a profit of $1,000 throughout the year. When tax time rolls around, you’ll pay taxes on these gains at the same rate as your ordinary income. So if you end the year with $60,000 in taxable income, including your day trading profits, then you can expect to pay as much as 22% in taxes on that portion of your income.

How to Minimize Capital Gains Taxes

Hold Your Investments Longer

The long-term capital gains tax rate is usually lower than the rate for short-term capital gains. Consider this: An individual making up $39,000 in taxable income or a married couple making up to $79,000 will pay no taxes at all on a long-term capital gain. Yet the same people would pay up to 12% for a short-term capital gain. And for especially high earners, the difference could be 20% for long-term capital gains versus 37% for short-term capital gains earned in tax year 2020.

One of the easiest ways to reduce your capital gains taxes is to hold your asset for at least one year.

Invest in Tax-Advantaged Retirement Accounts

Tax-advantaged retirement accounts such as 401(k)s and individual retirement accounts (IRAs) aren’t subject to the same capital gains taxes that other investments are. Investors can buy and sell assets within these accounts without worrying about paying capital gains taxes. These tax-advantaged rules also apply to 529 college savings plans.

Tax Advantage of Tax-Loss Harvesting

Tax-loss harvesting is a strategy that involves selling securities at a loss to offset the amount of the gain you made on other investments that you sold. This strategy helps reduce your overall tax liability because the loss can help cancel out the gain.

For example, let’s say you invest $1,000 in Fund A and $1,000 in Fund B. One year later, you sell Fund A at $1,300 and Fund B at $500. You realized a gain of $300 with Fund A and a loss of $500 with Fund B. You wouldn’t owe any tax on the gain because you lost more than you gained. That amount can also help you reduce your taxable income.

Claim Your Capital Losses

The IRS allows you to claim your capital losses up to a certain amount and use them to offset your capital gains. A capital loss occurs when you sell an asset for less than you paid for it. When you file your taxes, be sure to claim any losses to help reduce your capital gains tax burden.

Pay Attention to Your Income Before Selling for a Gain

When you sell an asset and experience a long-term capital gain, the rate at which it's taxed depends on your income for the year. If your income is right over the border of a capital gains tax bracket, consider holding the asset until a year where your income may be lower.

Just a small change in your income can make a pretty significant difference. For example, someone making $39,000 in taxable income may not pay any long-term capital gains taxes at all, while someone with $41,000 in taxable income would pay 15% in long-term capital gains taxes.

It’s a small difference in income, but a big gap in the amount you’d pay in capital gains taxes.

If you don’t anticipate your income going down in the future, consider finding other ways to reduce your taxable income, such as looking for new deductions to qualify for. For example, slightly increasing your deductible contributions to a retirement account may reduce your taxable income enough to bring you down to a lower long-term capital gains tax rate.

Take Advantage of the Exclusion for Your Home

The IRS offers a capital gains exclusion to homeowners who are selling their primary residence. If you sell your home for more than you bought it, be sure to take advantage of the exclusion amount when filing your taxes (more on this below).

Unusual Capital Gains Situations

While the short-term and long-term capital gains rules apply to many investments, there are a handful of exceptions.

Capital Gains on Mutual Funds

Capital gains apply slightly differently to mutual funds. Unlike other types of assets, you might be subject to capital gains taxes for your mutual fund holdings even if you don’t sell your shares.

Throughout the year, mutual fund companies must pass earnings onto shareholders in the form of distributions. Even if you reinvest your distributions back into the fund, you’ll still have to report and pay capital gains taxes on them.

If you invest in a mutual fund and receive distributions subject to capital gains taxes, you’ll receive an IRS Form 1099-DIV.

Capital Gains on Your Primary Residence

When you sell your primary residence, you might be able to exclude some of the profits from capital gains tax. You may exclude the first $250,000 (or $500,000 for married couples) of your capital gain from taxes if:

You owned the home for at least two of the past five years
You owned the home and used it as your residence for at least two of the past five years
You didn’t sell another home during the two years before the date of sale or didn’t take an exclusion from the sale

Capital Gains on Collectibles

The tax rate on capital gains from the sale of collectibles, such as coins or art, is 28%.

Capital Gains on Depreciated Property

The IRS taxes unrecaptured Section 1250 gains at a rate of 25%. This section of the tax code applies to property you own that has depreciated in value over time, resulting in a tax break.

Capital Gains on Small Business Stock

If you sell qualified small business stock and receive a capital gain, you’ll be taxed at a rate of 28%.

Net Investment Income Tax

Depending on your annual income, you might also be subject to the net investment income tax (NIIT). This rule results in an additional 3.8% tax to certain investment income for single filers with a modified adjusted gross income (MAGI) of $200,000 or more, and married individuals filing jointly with a MAGI of $250,000 or more.

Know the differences to get the most from your investment portfolio

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When you sell a capital asset for more than you paid for it, the result is a capital gain. Capital assets include stocks, bonds, precious metals, jewelry, and real estate. The tax you'll pay on the capital gain depends on how long you held the asset before selling it. Capital gains are classified as either long-term or short-term and are taxed accordingly.

It's important to keep these taxes in mind whenever you sell an asset, especially if you have been dabbling in day trading online. First off, any profits you make are taxable. And second, you may have heard that capital gains are taxed more favorably than other types of income, but that's not always the case. As mentioned above, it depends on how long you owned those assets before you sold them.

Long-term capital gains are derived from assets that are held for more than one year before they are disposed of. Long-term capital gains are taxed according to graduated thresholds for taxable income at 0%, 15%, or 20%. The tax rate on most taxpayers who report long-term capital gains is 15% or lower.

President Biden is reportedly proposing to raise taxes on long-term capital gains for individuals earning $1 million or more to 39.6%. Added to the existing 3.8% investment surtax on higher-income investors, the tax could rise to 43.4%, not counting state taxes.

Short-term capital gains are taxed just like your ordinary income. That's up to 37% depending on your tax bracket.

Key Takeaways

Selling a capital asset—for example, stocks, bonds, precious metals, or real estate—for more than the purchase price results in a capital gain.
Short-term capital gains result from selling capital assets owned for one year or less and are taxed as regular income.
Long-term capital gains result from selling capital assets owned for more than one year and are subject to tax of 0%, 15%, or 20%.

The Difference Between Short-Term and Long-Term

A short-term capital gain results from the sale of an asset owned for one year or less. While long-term capital gains are generally taxed at a more favorable rate than salary or wages, gains that are classified as short-term do not benefit from any special tax rates. They are subject to taxation as ordinary income.

As regular taxable income, short-term gains are subject to whichever tax bracket you fall under. There are currently seven federal tax brackets in the U.S., with rates ranging from 10% to 37%.

Net capital gains are calculated based on your adjusted basis in an asset. That is the amount you paid to acquire the asset, less depreciation, plus any costs you incurred during the sale of the asset and the costs of any improvements you made. If an asset is given to you as a gift, you inherit the donor's basis.

The tax on a long-term capital gain is almost always lower than if the same asset were sold (and the gain realized) in less than a year. Because long-term capital gains are generally taxed at a more favorable rate than short-term capital gains, you can minimize your capital gains tax by holding assets for a year or more.

Long-Term Capital Gains Tax Rates

After the passage of the Tax Cuts and Jobs Act (TCJA), the tax treatment of long-term capital gains changed. Prior to 2018, the tax brackets for long-term capital gains were closely aligned with income tax brackets. TCJA created unique tax brackets for long-term capital gains tax. These numbers generally change from year to year.

Filing Status

0% rate

15% rate

20% rate

$40,000 to to $441,450

Head of household

$53,600 to $469,050

Married filing jointly

$80,000 to $496,600

Married filing separately

$40,000 to $248,300

Source: Internal Revenue Service.

Short-Term Capital Gains Tax Rates

Short-term capital gains are taxed as though they are ordinary income. Any income you receive from investments you held for less than a year must be included in your taxable income for that year. For example, if you have $80,000 in taxable income from your salary and $10,000 from short-term investments, your total taxable income is $90,000.

The tax you'll pay on short-term capital gains follows the same tax brackets as ordinary income.

Tax Rates for Short-Term Capital Gains 2020
Filing Status	10%	12%	22%	24%	32%	35%	37%
Single	Up to $9,875	$9,876 to $40,125	$40,126 to $85,525	$85,526 to $163,300	$163,301 to $207,350	$207,351 to $518,400	Over $518,400
Head of household	Up to $14,100	$14,101 to $53,700	$53,701 to $85,500	$85,501 to $163,300	$163,301 to $207,350	$207,351 to $518,400	Over $518,400
Married filing jointly	Up to $19,750	$19,751 to $80,250	$80,251 to $171,050	$171, 051 to $326,600	$326,601 to $414,700	$414,701 to $622,050	Over $622,050
Married filing separately	Up to $9,875	$9,876 to $40,125	$40,126 to $85,525	$85,526 to $163,300	$163,301 to $207,350	$207,351 to $311,025	Over $311,025

Source: Internal Revenue Service.

Ordinary income is taxed at differing rates depending on your income. It's possible that a short-term capital gain—or part of it at least—might be taxed at a higher rate than your regular earnings. That's because it might cause part of your overall income to jump into a higher tax bracket.

For example, using the 2020 federal income tax rates, and assuming you are filing that income as a single person, you'd be in the 22% tax bracket with your taxable income from your salary. However, because of the progressive nature of the federal tax system, the first $9,875 you earn would be taxed at 10%, your income from $9,876 up to $40,125 would be taxed at 12%, and only the income from $40,126 to $85,525 would be taxed at 22%.

Part of your $10,000 capital gain—the portion up to the $85,525 limit for the bracket—would be taxed at 22%. The remaining $4,475 of the gain, however, would be taxed at 24%, the rate for the next-highest tax bracket.

Capital Gains and State Taxes

Whether you have to pay capital gains to the state as well depends on where you live. Some states also tax capital gains, while others have no capital gains taxes or favorable treatment of them.

The following states have no income taxes, and therefore no capital gains taxes:

Alaska
Florida
New Hampshire
South Dakota
Tennessee
Texas
Washington
Wyoming

Colorado, Nevada, and New Mexico do not tax capital gains. Montana has a credit to offset part of any capital gains tax.

Capital Gains Special Rates and Exceptions

Some assets receive different capital gains treatment or have different time frames than the rates indicated above.

Collectibles

You're taxed at a 28% rate—regardless of your income—for gains on art, antiques, jewelry, precious metals, stamp collections, coins, and other collectibles.

Small-Business Stock

The tax treatment of a qualified small business stock depends on when the stock was acquired and how long it was held. In order to qualify for this exemption, the stock must have been acquired from a qualified small business after Aug. 10, 1993, and the investor must have held the stock for at least five years. This exclusion has a cap of $10 million, or 10 times the adjusted basis of the stock—whichever is greater. Any capital gains above that amount are subject to a 28% rate.

Owner-Occupied Real Estate

There's a special capital gains arrangement if you sell your principal residence. The first $250,000 of an individual's capital gains on the sale of your principal residence is excluded from taxable income ($500,000 for those married filing jointly) as long as the seller has owned and lived in the home for two of the five years leading up to the sale. If you sold your home for less than you paid for it, this loss is not considered tax-deductible, because capital losses from the sale of personal property, including your home, are not tax-deductible.

For example, a single taxpayer who purchased a house for $300,000 and later sells it for $700,000 made a $400,000 profit on the sale. After applying the $250,000 exemption, they must report a capital gain of $150,000. This is the amount subject to the capital gains tax.

In most cases, significant repairs and improvements can be added to the base cost of the house. These can serve to further reduce the amount of taxable capital gain. If you spent $50,000 to add a new kitchen to your home, this amount could be added to the $300,000 original purchase price. This would raise the total base cost for capital gains calculations to $350,000 and lower the taxable capital gain from $150,000 to $100,000.

Investment Real Estate

Investors who own real estate are often allowed to apply deductions to their total taxable income based on the depreciation of their real estate investments. This deduction is meant to reflect the steady deterioration of the property as it ages, and essentially reduces the amount you're considered to have paid for the property in the first place. This also has the effect of increasing your taxable capital gain when the property is sold.

For example, if you paid $200,000 for a building and you're allowed to claim $5,000 in depreciation, you'll be treated subsequently as if you'd paid $195,000 for the building. If you then sell the real estate, the $5,000 is treated as recapturing those depreciation deductions. The tax rate that applies to the recaptured amount is 25%.

So if you sold the building for $210,000, there would be total capital gains of $15,000. But $5,000 of that figure would be treated as a recapture of the deduction from income. That recaptured amount is taxed at 25%, where the remaining $10,000 of capital gain would be taxed at one of the 0%, 15%, or 20% rates indicated above.

Investment Exceptions

High-income earners may be subject to another tax on their capital gains, called the net investment income tax. This tax imposes an additional 3.8% on your investment income, including your capital gains if your modified adjusted gross income (MAGI) exceeds certain maximums: $250,000 if married and filing jointly or you're a surviving spouse, $200,000 if you're single or a head of household, and $125,000 if married filing separately.

Advantages of Long-Term Capital Gains

It can be advantageous to keep investments for longer if they will be subject to capital gains tax once they're realized.

The tax rate will be lower for most people if they realize a capital gain in more than a year. For example, suppose you bought 100 shares of XYZ stock at $20 per share and sold them at $50 per share. Your regular income from earnings is $100,000 a year and you are part of a married couple that files jointly. The chart below compares the taxes you'd pay if you held and sold the stock in more than a year and less than a year.

How Patience Can Pay off in Lower Taxes
Transactions and consequences	Long-term capital gain	Short-term capital gain
Bought 100 shares @ $20	$2,000	$2,000
Sold 100 shares @ $50	$5,000	$5,000
Capital gain	$3,000	$3,000
Capital gain	$450 (taxed @ 15%)	$660 (taxed @ 22%)
Profit after tax	$2,550	$2,340

*This chart shows how a married couple (filing jointly) earning $100,000 a year could avoid over $200 in taxes by waiting at least a year before selling shares that had appreciated $3,000.

The sale of qualified small business stock is treated favorably for capital gains purposes. Under Section 1202 of the Internal Revenue Code—the Small Business Stock Gains Exclusion—the capital gains from qualified small businesses are exempt from federal taxes.

You would pay $450 of your profits by opting for a long investment gain and being taxed at long-term capital gains rates. But had you held the stock for less than one year (and so incurred a short-term capital gain), your profit would have been taxed at your ordinary income tax rate. For our $100,000 a year couple, that would trigger a tax rate of 24%, the applicable rate for income over $85,500 in 2020. That adds an additional $270 to the capital gains tax bill, for a total of $720.

While it's possible to make a higher return by cashing in your investments frequently and repeatedly shifting the funds to fresh new investment opportunities, that higher return may not compensate for higher short-term capital gains tax bills. To illustrate, consider the 30-year impact of investing $1,000 for a high-income-earning couple who'd pay the highest long-term capital gains rate of 20%.

In this scenario, the calculations compared investing in a long-run strategy with a series of short-term investments that were held for less than a year.

The long-run strategy would yield almost an additional $20,000 over 30 years compared with the short-term approach. That holds true despite the long-term investment earning 10% a year versus 12% for each of the short-term investments.

Making constant changes in investment holdings, resulting in high payments of capital gains tax and commissions, is called churning.

The Bottom Line

The tax on a long-term capital gain is almost always lower than if the same asset were sold in less than a year; most taxpayers don't have to pay the highest long-term rate. Tax policy encourages you to hold assets subject to capital gains for a year or more.

More In Help

Almost everything you own and use for personal or investment purposes is a capital asset. Examples include a home, personal-use items like household furnishings, and stocks or bonds held as investments. When you sell a capital asset, the difference between the adjusted basis in the asset and the amount you realized from the sale is a capital gain or a capital loss. Generally, an asset's basis is its cost to the owner, but if you received the asset as a gift or inheritance, refer to Topic No. 703 for information about your basis. For information on calculating adjusted basis, refer to Publication 551, Basis of Assets. You have a capital gain if you sell the asset for more than your adjusted basis. You have a capital loss if you sell the asset for less than your adjusted basis. Losses from the sale of personal-use property, such as your home or car, aren't tax deductible.

Short-Term or Long-Term

To correctly arrive at your net capital gain or loss, capital gains and losses are classified as long-term or short-term. Generally, if you hold the asset for more than one year before you dispose of it, your capital gain or loss is long-term. If you hold it one year or less, your capital gain or loss is short-term. For exceptions to this rule, such as property acquired by gift, property acquired from a decedent, or patent property, refer to Publication 544, Sales and Other Dispositions of Assets; or for commodity futures, see Publication 550, Investment Income and Expenses. To determine how long you held the asset, you generally count from the day after the day you acquired the asset up to and including the day you disposed of the asset.

If you have a net capital gain, a lower tax rate may apply to the gain than the tax rate that applies to your ordinary income. The term "net capital gain" means the amount by which your net long-term capital gain for the year is more than your net short-term capital loss for the year. The term "net long-term capital gain" means long-term capital gains reduced by long-term capital losses including any unused long-term capital loss carried over from previous years.

Capital Gain Tax Rates

The tax rate on most net capital gain is no higher than 15% for most individuals. Some or all net capital gain may be taxed at 0% if your taxable income is less than $80,000.

A capital gain rate of 15% applies if your taxable income is $80,000 or more but less than $441,450 for single; $496,600 for married filing jointly or qualifying widow(er); $469,050 for head of household, or $248,300 for married filing separately.

However, a net capital gain tax rate of 20% applies to the extent that your taxable income exceeds the thresholds set for the 15% capital gain rate.

There are a few other exceptions where capital gains may be taxed at rates greater than 20%:

The taxable part of a gain from selling section 1202 qualified small business stock is taxed at a maximum 28% rate.
Net capital gains from selling collectibles (such as coins or art) are taxed at a maximum 28% rate.
The portion of any unrecaptured section 1250 gain from selling section 1250 real property is taxed at a maximum 25% rate.

Note: Net short-term capital gains are subject to taxation as ordinary income at graduated tax rates.

Limit on the Deduction and Carryover of Losses

If your capital losses exceed your capital gains, the amount of the excess loss that you can claim to lower your income is the lesser of $3,000 ($1,500 if married filing separately) or your total net loss shown on line 21 of Schedule D (Form 1040). Claim the loss on line 6 of your Form 1040 or Form 1040-SR. If your net capital loss is more than this limit, you can carry the loss forward to later years. You may use the Capital Loss Carryover Worksheet found in Publication 550, Investment Income and Expenses or in the Instructions for Schedule D (Form 1040) PDF to figure the amount you can carry forward.

Where to Report

Report most sales and other capital transactions and calculate capital gain or loss on Form 8949, Sales and Other Dispositions of Capital Assets, then summarize capital gains and deductible capital losses on Schedule D (Form 1040), Capital Gains and Losses.

Estimated Tax Payments

If you have a taxable capital gain, you may be required to make estimated tax payments. For additional information, refer to Publication 505, Tax Withholding and Estimated Tax, Estimated Taxes and Am I Required to Make Estimated Tax Payments?

Net Investment Income Tax

Individuals with significant investment income may be subject to the Net Investment Income Tax (NIIT). For additional information on the NIIT. For additional information on the NIIT, see Topic No. 559.

Additional Information

Additional information on capital gains and losses is available in Publication 550 and Publication 544, Sales and Other Dispositions of Assets. If you sell your main home, refer to Topic No. 701, Topic No. 703 and Publication 523, Selling Your Home.

Updated: April 18, 2021 By Robert Farrington

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There are two capital gains tax categories with different tax brackets - short term and long term.

Long term investments pay less in taxes - these are investments that you typically hold for longer than one year.

Short term investments are taxed at your regular income rate.

Let's break down what the capital gains tax brackets look like, the income cut-offs, and more below. You can see how these compare to the regular Federal tax brackets here.

What Are Capital Gains?

When you sell a stock for a profit, you realize a capital gain. Basically, when most assets are sold for a profit, a capital gain is generated. Profits or gains are taxable. How much you’ll pay depends on a number of factors, including the current tax brackets, which change periodically.

Personal assets and investments are called capital assets. This includes your home, car, investments, recreational vehicle, and more. IRS Topic Number 409 covers these items in more detail. A capital gain or capital loss is based on the difference between the asset sale price and your adjusted basis, which is referenced in IRS Publication 551.

2021 Capital Gains Tax Brackets

There are two main categories for capital gains: short- and long-term. Short-term capital gains are taxed at your ordinary income tax rate. Long-term capital gains are taxed at only three rates: 0%, 15%, and 20%.

Remember, this isn't for the tax return you file in 2021, but rather, any gains you incur from January 1, 2021 to December 31, 2021.

The actual rates didn't change for 2020, but the income brackets did adjust slightly.

Short-Term Capital Gains Rates

Tax rates for short-term gains are 10%, 12%, 22%, 24%, 32%, 35%, and 37%.

Short-term gains are for assets held for one year or less - this includes short term stock holdings and short term collectibles.

2021 Short Term Capital Gains Tax Brackets

Tax Bracket/Rate

Single

Married Filing Jointly

Head of Household

Long-Term Capital Gains Rates

Just like short-term gains, there are four filing categories: single, married and filing jointly, head of household, and married and filing separately. The amount of taxes paid is based on income.

The brackets adjusted slightly upwards for 2021.

Long-term gains are those on assets held for over a year. Below, the percentage of taxes paid are listed on the left with the corresponding income on the right.

2021 Long Term Capital Gains Tax Brackets

Tax Bracket/Rate

Single

Married Filing Jointly

Head of Household

Net Investment Income Tax (Medicare Tax)

The Net Investment Income Tax (NIIT) or Medicare Tax applies at a rate of 3.8% to certain net investment income of individuals, estates and trusts that have income above the statutory threshold amounts.

In general, investment income includes, but is not limited to: interest, dividends, capital gains, rental and royalty income, non-qualified annuities, income from businesses involved in trading of financial instruments or commodities and businesses that are passive activities to the taxpayer

Individuals will owe the tax if they have Net Investment Income and also have modified adjusted gross income over the following thresholds:

2021 Net Investment Income Tax

Filing Status

AGI Threshold Amount

Married Filing Jointly

Married Filing Separately

Head Of Household

Qualifying Widower with Dependent Child

Collectible Long Term Capital Gains Rate

Collectibles held over one year are always taxed at 28%.

Collectibles include gold and silver, art work, rare coins, antiques, and more.

2020 Capital Gains Tax Brackets

Here are the 2020 capital gains tax rates.

The actual rates didn't change for 2020, but the income brackets did adjust slightly.

Short-Term Capital Gains Rates

Tax rates for short-term gains are 10%, 12%, 22%, 24%, 32%, 35%, and 37%.

Short-term gains are for assets held for one year or less - this includes short term stock holdings and short term collectibles.

2020 Short Term Capital Gains Tax Brackets

Tax Bracket/Rate

Single

Married Filing Jointly

Head of Household

Long-Term Capital Gains Rates

Just like short-term gains, there are four filing categories: single, married and filing jointly, head of household, and married and filing separately. The amount of taxes paid is based on income.

The brackets adjusted slightly upwards for 2020.

Long-term gains are those on assets held for over a year. Below, the percentage of taxes paid are listed on the left with the corresponding income on the right.

2020 Long Term Capital Gains Tax Brackets

Tax Bracket/Rate

Single

Married Filing Jointly

Head of Household

Net Investment Income Tax (Medicare Tax)

Individuals will owe the tax if they have Net Investment Income and also have modified adjusted gross income over the following thresholds:

2020 Net Investment Income Tax

Filing Status

AGI Threshold Amount

Married Filing Jointly

Married Filing Separately

Head Of Household

Qualifying Widower with Dependent Child

Collectible Long Term Capital Gains Rate

Collectibles held over one year are always taxed at 28%.

Collectibles include gold and silver, art work, rare coins, antiques, and more.

2019 Capital Gains Tax Brackets

Here are the 2019 capital gains tax rates.

Short-Term Capital Gains Rates

Tax rates for short-term gains are 10%, 12%, 22%, 24%, 32%, 35%, and 37%.

Short-term gains are for assets held for one year or less - this includes short term stock holdings and short term collectibles.

2019 Short Term Capital Gains Tax Brackets

Tax Bracket/Rate

Single

Married Filing Jointly

Head of Household

Long-Term Capital Gains Rates

Just like short-term gains, there are four filing categories: single, married and filing jointly, head of household, and married and filing separately. The amount of taxes paid is based on income.

Long-term gains are those on assets held for over a year. Below, the percentage of taxes paid are listed on the left with the corresponding income on the right.

2019 Long Term Capital Gains Tax Brackets

Tax Bracket/Rate

Single

Married Filing Jointly

Head of Household

Net Investment Income Tax (Medicare Tax)

Individuals will owe the tax if they have Net Investment Income and also have modified adjusted gross income over the following thresholds:

2019 Net Investment Income Tax

Filing Status

AGI Threshold Amount

Married Filing Jointly

Married Filing Separately

Head Of Household

Qualifying Widower with Dependent Child

Collectible Long Term Capital Gains Rate

Collectibles held over one year are always taxed at 28%.

Collectibles include gold and silver, art work, rare coins, antiques, and more.

Calculating Capital Gains and Losses

While you can have a capital gain from the profitable sale of an asset, you can also have a capital loss from the sale of an asset below your purchase price or adjusted basis.

As an example, say you buy and sell stock in the same year up to November. Your trading has netted $10,000 in profits. These profits are classified as short-term gains because they’re less than a year old. Then in December of the same year, you sell more stock for a loss of $3,000. Your capital gain is reduced to $7,000.

A different investor buys and sells some stock during a year and manages to lose $5,000. This investor has a capital loss of $5,000 but can only declare $3,000 ($1,500 if married filing separately) for the current year. What happens to the remaining $2,000?

The $2,000 capital loss in the previous example is carried over to the next year. It can be applied as a capital loss. Using another example, our investor has a capital gain of $10,000 in the next year. They can offset this gain and reduce their taxes by the amount carried over from the previous year: $2,000. Their new capital gain is then $8,000.

With capital gains, your capital gain is stacked on top of other ordinary income before the bracket and rate is calculated. This does leave some planning opportunity to try and minimize the taxes paid, but given the 0% bracket is relatively low, it likely means your gains will extend into other brackets.

While at the marginal level, capital gains are flat taxed - in practice, your gain can be subject to different tax rates depending on the amount of the gain. You can see this in the tax brackets section above. If you are single and make a $45,000 capital gain on top of your $40,000 in ordinary income, your long-term capital gains tax bracket is 15%. You will then pay $6,750 ($45,000 x 0.15) in taxes on this gain.

However, if you're single, and have no other income other than your $45,000 capital gain, your first $40,000 would be in the 0% bracket, and the remaining $5,000 would be taxed at 15%.

How to Reduce Your Taxes

Nobody likes paying taxes and everyone is looking for ways to reduce them. There are a few ways that you can reduce your capital gains taxes.

Keeping Investments for at Least a Year

If you hold investments for at least a year before selling, you’ll be able to take advantage of long-term gains.

Use a Robo-Advisor

Robo-advisors have become very popular. While they haven’t yet replaced financial advisors, for most people, they can help save on taxes.

Robo-advisors use a method called tax-loss harvesting. By selling losers, gains on winners are offset. Of course, you can perform tax-loss harvesting manually. However, robo-advisors make this task easy through the use of automation.

It seems there is nowhere to hide from taxes. But arming yourself with knowledge about capital gains taxes can help you save money. We’ve already seen a few practical tips. Your accountant is likely to have more. Ask your accountant questions throughout the year so you can set yourself up for maximizing capital gains tax reductions.

Robert Farrington is America’s Millennial Money Expert® and America’s Student Loan Debt Expert™, and the founder of The College Investor, a personal finance site dedicated to helping millennials escape student loan debt to start investing and building wealth for the future. You can learn more about him on the About Page, or on his personal site RobertFarrington.com.

He regularly writes about investing, student loan debt, and general personal finance topics geared towards anyone wanting to earn more, get out of debt, and start building wealth for the future.

He has been quoted in major publications including the New York Times, Washington Post, Fox, ABC, NBC, and more. He is also a regular contributor to Forbes.

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