posted
I am aware that a short term capital gain is taxed as income at your current tax bracket. However, will the gain potentially cause you to go into a new tax bracket. For example: If I put 1,000 into ABC stock and sold it 6 months later for $100,000, would that $100,000 be added to my employment income and put me up into a higher bracket?
Six Black Roses
posted
It wouldn't put you into the higher tax bracket--tax brackets only go by income like this:
You make the max allowed for first bracket, you get taxed from that money at the first bracket.
If you make more money than the first bracket allows, the money exceeding the first bracket is taxed at the second bracket--the first bracket money still gets taxed at the first bracket.
So you don't have to worry about all of a sudden being taxed dramatically more money just because you made another thousand.
jonboy7
posted
So if my bracket was 15% and by some fluke I managed a $99,000 return in the stock market, what would my tax rate be? In other words what would my percentage be for capital gains?
[This message has been edited by jonboy7 (edited February 05, 2004).]
jonboy7
posted
Please delete this reply!
[This message has been edited by jonboy7 (edited February 05, 2004).]
VNGNTN1
posted
JB The new tax law sets Capital Gains at 15% max(Down from 20 good reason to vote for the guy who did this) the same as "your" Normal rate. If you move to a different Income rate Capital Gains stays at 15%, but all "sales" under a year that show a profit will be taxed at your new higher rate. Any losses may also be deducted from your taxes max $3000/yr,but carried forward VAN
[This message has been edited by VNGNTN1 (edited February 06, 2004).]