Capital Gains Tax Rates For Investors For 2014 And The Net Investment Income Tax
Short-term investment gains (that is gains for investments you held for less than a year) are taxed at your ordinary income tax rates. Long-term gains (that is gains on investments you have owned for longer than a year) are taxed depending on your overall income tax bracket.
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- If your overall income falls within the 10% or 15% tax brackets your long-term capital gains tax rate is zero
- If you are in the 25%, 28%, 33% or 35% tax brackets your long-term capital gains tax rate is 15%
- If you are in the 39.6% income tax bracket your long-term capital gains tax rate is 20%
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In addition, an additional 3.8% net investment income tax is assessed above and beyond the capital gains tax. The net investment income tax kicks in once your income is $125,000 if you’re married filing separately, or once your income is $250,000 if you are married and file filing jointly.
As the real estate market continues to show signs of improvement, it is more important than ever to properly structure your transaction. Whether you are buying or selling, the lawyers at Beresford Booth can help you minimize the taxes and liabilities associated with your investments.