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Author: TMFTaxes Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 121149  
Subject: Re: Short Term Cap Gains Date: 4/10/1999 12:11 AM
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[[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 Taxes
Roy

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