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?
Posts: 25 | From: United States | Registered: Jan 2004
| IP: Logged |
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).]