Capital Gain Or Income
October 1st, 2009
Question: Is the tax rate higher for income or capital gains?
I’ve already accumulated about $45,000 in short term capital gains this year. I need to liquidate another $40,000 in stocks or sell part of an inherited IRA which, as I understand, will be taxed as income. Is the tax hit going to be the same either way?
Last year I had taxable income of about $53,000 with next to no capital gains. This year I expect about the same taxable income plus the capital gains.
Answer: Short term cap gains are taxed as ordinary income. LT gains are at a 15% rate, but that is set to expire in a few years (irrelevant to you). BTW, how did you get those kinds of gains? Time to share, LOL!
(AFX UK Focus) 2010-01-06 05:34 HK, China stocks gain; exporters, energy rise
By Jun Ebias and Claire Zhang
Smart Tips on Capital Gains
Posted in 
Tags: