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A look at long-term capital gains tax rates
Source:
bankrate.com
- Jun 27, 2016
Money gurus are always preaching long-term investing. Not only will that give you a better shot at earning more, it'll also get you a lower tax rate when you sell your assets.
But exactly what rate you pay depends on your income.
Changes to long-term capital gains rates
The American Taxpayer Relief Act of 2012, or ATRA, enacted Jan. 2, 2013, made some popular capital gains tax laws permanent. That means investors won't have to worry about trying to plan while facing possible changing tax laws.
ATRA also increased the top tax rate on long-term capital gains and certain dividend payments to 20% for high-income earners. This is 5% higher than the laws under the George W. Bush administration.
However, if you make less than those amounts for your filing status, the maximum capital gains and dividends tax rates continue at 15%.
And some taxpayers in the 2 lowest tax brackets could end up without any capital gains tax bill. That's right; zero capital gains for some filers.
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Category: General Business
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