Capital gains tax

[mollyanna58]

Is the long term capital gains tax for sale of stock still 15%, or is it back to the filer's general tax rate?

Thanks.

[bean29]

www.irs.gov/taxtopics/tc409.html

The tax rate on most net capital gain is no higher than 15% for most taxpayers. Some or all net capital gain may be taxed at 0% if you are in the 10% or 15% ordinary income tax brackets. However, a 20% rate on net capital gain applies in tax years 2013 and later to the extent that a taxpayer’s taxable income exceeds the thresholds set for the new 39.6% ordinary tax rate ($406,750 for single; $457,600 for married filing jointly or qualifying widow(er); $432,200 for head of household, and $228,800 for married filing separately). For more information, refer to Publication 505, Tax Withholding and Estimated Tax

looks like it is 15%, unless your taxable income is very high.  But I am not a tax person, maybe Captain or one of our other Tax people will help.

[The Captain]

Nope - bean29 - you've got it right. 

As a practice note, this is one area (among many) that the Obama administration is targeting.  They want to increase the capital gains rate.  Personally, I don't think it will get any traction unless/until we get a 100% democratically controlled congress and presidency.  Even then, it's not as popular as some other proposals.

[mwcpa]

To correct the comment, most, if not all of the candidates running for President for 2016 want to change how certain capital gains are taxed, especially those that result from "carried interests."

There is no legitimate proposal from the current administration, members of Congress or the Senate, at this time to change the way traditional capital gains are taxed.

[mollyanna58]

Oct 18, 2015 18:25:16 GMT -5 mwcpa said:

To correct the comment, most, if not all of the candidates running for President for 2016 want to change how certain capital gains are taxed, especially those that result from "carried interests."

There is no legitimate proposal from the current administration, members of Congress or the Senate, at this time to change the way traditional capital gains are taxed.

Thank you.

I'm most concerned with a capital gain for a sale made in 2015, so the current regulations apply.  I understand tax laws and rates can change in the future.

[taxref]

Just to confirm the answer to the original question, most taxpayers will pay a LTCG rate of 15% for sales made in 2015.  Those whose income reaches the 39.6% tax bracket will pay 20%.