How Much is Capital Gains Tax in 2009, 2010
March 26th, 2010When you sell a capital asset and receive a profit from it, that is called a capital gain. Some examples of capital assets would be:
- Stocks
- Bonds
- Mutual Fund Shares
- Real Estate
What is the difference between short-term and long-term capital gains?
A short-term capital gain is when you receive gains from either a property or investment that you owned for less than a year. A short-term capital gain is taxed much higher than a long-term gain. Short-term capital gains are taxed at your maximum tax rate, which could be up to 35%.
A long-term capital gain is taxed at 15% unless you are considered low income. Currently if you are in the 10-15% tax bracket as a taxpayer then you do not have to pay anything on your long-term capital gains. This 0% tax rate is only temporary to help stimulate the economy so take advantage of it now.
Capital Losses
If by chance you sold property or stock and lost money then you can apply that loss against other capital gains. If you had a short-term loss then that would be applied to any short-term gains. The same would apply for long-term capital losses.
If you have had a capital gain or loss this year and you are concerned about how to file this on your return then we suggest using an online tax preparation service. TurboTax Premier does all of the work for you which will save you a lot of time and ensure that your taxes are calculated correctly. Learn More about Capital Gains Tax Rates.
For more information...
Turbotax
- Make Time To Understand Affiliate Marketing
- Affiliate Revenue – What Most Articles Are Ignorant About
- The Main Secret Elements Of Affiliate Revenue
- How To Avoid The Most Common AdWords Mistakes
- Proven Ways To Skyrocket Squeeze Page Conversion Rates
Tags: Capital Asset, Capital Assets, Capital Gains Tax, Capital Gains Tax Rates, Capital Losses, Economy, Long Term Capital, Long Term Capital Gain, Long Term Capital Gains, Maximum Tax Rate, Mutual Fund Shares, Nbsp, Real Estate, Short Term Capital Gain, Short Term Capital Gains, Stocks Bonds, Tax Bracket, Tax Preparation Service, Term Gain, Turbotax