[[Question: Is Short term capital gains taxed at a max of 28%? ]]Nope...short term capital gains will be taxed at your ordinary tax rate...as low as 15% or as high as 39.6%...depending upon your other income.[[As an example: If adjusted gross income is $300,000 consisting of $12,000 Interest/Div. Income $30,000 pension income and $252,000 Short Term gain on stock (with no earned income)...Is my marginal tax rate the 39% because of this short term cap gain or is my marginal tax rate 20%.]]Your AGI doesn't determine your tax rate. But if you are a single person with only the standard deduction to claim, you can pretty much be assured that you'll be in the 39.6% bracket.[[ In other words will I have one tax rate for the $42,000 income and another tax rate for the $252,000 Cap Gain?]]Nope...it'll all be lumped on top of another and it'll just push you up in the brackets. You can read more about capital gains tax rates in the Taxes FAQ area.TMF TaxesRoyWant to learn more about taxes and investing? Then we have a deal for you!! The Motley Fool Investment Tax Guide is now available through Fool Mart. Be the first one on your block to own this masterpiece. It'll help you with your 1998 taxes, and it's never to early to start planning for your 1999 taxes. So just click on this link (http://www.foolmart.com/market/product.asp?pfid=MF+013+I) to read more about this amazing collection of tax information. (Apologies for the shameless plug…but it is a pretty good book…if I do say so myself). In addition, if you would like to visit the Taxes FAQ (Frequently Asked Questions) area, click on http://www.fool.com/school/taxes/taxes.htm and you'll be right at the home page. Check it out. Finally, if you need to get to the IRS web site, click on http://www.irs.ustreas.gov to go directly there.
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