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Long-Term Capital Gains

Long-Term Capital Gains

Generally, gain from the sale or exchange of a capital asset held for personal use is a capital gain.  The 2018 tax law rates on net capital gains and qualified dividends are:

 

Married Filing Jointly and Surviving Spouse

Tax Rate         Long-Term (held for over 1 year) Capital Gains and Qualified Dividends

00%                      $0 to $77,200

15%                      $77,201 to $479,000

20%                      $479,001 or more

 

The 15% threshold is $38,600 for married taxpayers filing separately), $51,700 for head of household, $2,600 for trusts and estates, and $38,600 for other unmarried individuals.

 

The 20% threshold is $238,500 for married taxpayers filing separately, $452,400 for head of household, $12,700 for estate and trust, and $425,800 for other unmarried individuals.

 

Note 1.  3.80% surcharge for Net Investment Income MAGI in excess of $250K for MFJ.

Note 2.  California has no separate capital gains tax rates and applies their ordinary tax rates.

 

Zaher Fallahi, Tax Attorney, CPA, is a Tax Controversy Attorney, and defends taxpayers in resolving their Income Tax and Offshore Accounts (FBAR and FATCA) problems. Telephones: (310) 719-1040 (Los Angeles), (714) 546-4272 (Orange County), e-mail [email protected]