Message Font: Serif | Sans-Serif
No. of Recommendations: 0
Regarding this week's article on capital gain rates, it should be noted that while your overall income will determine your capital gain rates (primarily 10% or 20%), you will receive the benefit of the lower bracket if your non capital gain income is less than the 15% income bracket cap. For example, a single filer with $10,000 in ordinary taxable income and $30,000 in LT capital gain taxable income would be taxed at 15% on the ordinary income, taxed at 10% on the first $16250 of capital gain income and taxed at 20% on the remainder of the capital gain income ($10000 ordinary income + $16250 capital gain income = $26250 which is the top of the 15% bracket for single filers).
Print the post  


In accordance with IRS Circular 230, you cannot use the contents of any post on The Motley Fool's message boards to avoid tax-related penalties under the Internal Revenue Code or applicable state or local tax law provisions.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.