Skip to main content
Message Font: Serif | Sans-Serif
No. of Recommendations: 0
Howdy Fools,
I understand that the capital gains tax rate (for those in the 15% bracket) who hold their stocks for more than a year is 10%.
What I can't figure out is this: What if the income generated from capital gains puts one OVER the 15% tax rate into the next tax rate? That is, say I'm just a few thousand dollars over the 15% tax bracket because of my capital gains. Should I sell long or short?
I'm in this situation because, as a student, most of my income comes from dividends, interest and cap gains. And the cap gains may be just enough such that I make it into the next income bracket. Being in the 15% bracket, it's clear that I should hold for at least a year and a day. But if I'm nudged just a bit into the next bracket by my capital gains, what should I do--hold for less than a year or for more than a year?

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.
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
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.