The 2023 capital gains tax bracket for the federal governement.
Capital Gains, there are two types short-term and long-term capital gains. Long-term capital gains are capital assets held for more than a year and a day, short-term held are less than a year. Capital Assets are considered stocks, bonds, homes, cars, furniture, any items that can be considered for personal use. There are exceptions to the rule, review https://www.irs.gov/taxtopics/tc409.
Net short-term capital gains are taxed at your normal tax bracket.
Net long-term capital gains are taxed at the rates below, depending on are your ordinary income plus capital gains.
Example
These examples only account capital gains on a federal level.
Single person makes $40,000 a year salary, and net long-term capital gains of $4,000
The tax for those capital gains would be $0.
Single person makes $50,000 a year salary, and net long-term capital gains of $4,000
The tax for those capital gains would be $600.
Single
| Rate | Start | Up to |
|---|---|---|
| 0% | $0 | $44,625 |
| 15% | $44,625 | $492,300 |
| 20% | $492,300 | Up |
Married Filing Seperately
| Rate | Start | Upto |
|---|---|---|
| 0% | $0 | $44,625 |
| 15% | $44,625 | $276,900 |
| 20% | $276,900 | Up |
Married Filing Jointly or Qualifying Surviving Spouse
| Rate | Start | Up to |
|---|---|---|
| 0% | $0 | $89,250 |
| 15% | $89,250 | $553,850 |
| 20% | $553,850 | Up |
Head of Household
| Rate | Start | Up to |
|---|---|---|
| 0% | $0 | $59,750 |
| 15% | $59,750 | $523,050 |
| 20% | $523,050 | Up |
There are a few exceptions to items that get taxed at higher rates, review.
Net capital losses can carry over from year to year up to $1,500 married person filing separately, else $3,000. This can be cliamed on your income to lesser it.
Please contact a tax professional, this is just an outline of the general principles. The are forms and information that is provided on the IRS website.