Things to Consider for Your 2015 Capital Gains Tax
There are all kinds of investors in the world. Some are looking to make a quick buck by buying and then quickly selling stocks as soon as they increase in value. Other investors buy stocks with an eye toward the future, which means they are in it for the long haul.
In any case, anyone who invests wants to be successful at it. It’s a great feeling to buy stock in a company and see that stock increase in value. However, at some point if you plan on selling that stock and cashing in or your gains, you will have to give a portion of those gains to the taxman. What percentage you will owe will depend on the size of your gain and how long you have owned the stock.
The government wants investors to hold onto their stocks longer. To encourage this they have a lower tax percentage on stocks held longer than a year. Whether you’re a quick turnaround trader or a long-term investor here’s what you should be aware of in 2015 for your capital gains taxes.
First, generally all you need to know to determine your capital gains is the difference between what you paid for the stock and how much you sold it for. When you know that amount then you can calculate the tax. Your tax rate will depend on which bracket you’re in. There are three that apply:
- If your ordinary income puts you in the 10-15 percent tax bracket, then your long-term capital gains rate is 0 percent.
- If your ordinary income falls in one of the 25, 28, 33, or 35 percent tax brackets then your long-term capital gains rate is 15 percent.
- If your ordinary income is in the 39.6% tax bracket, then your long-term capital gains rate is 20%.
There are a few other caveats to remember. For high-income earners, there is an additional 3.8 percent surtax on net investment income. Also, you only pay taxes on the net of your capital gains, which can make a big difference if you sell more than one stock in a year. If you want to learn more about capital gains taxes then please contact GROCO for more answers. Click here or call us at 1-877-CPA-2006.
The DNA That Drives our Money Behavior with Hugh Massie, Founder of DNA Behavior
Transcript: Alan Olsen Hi, this is Alan Olsen and welcome to American Dreams. My guest today is Hugh Massie. He is the chairman and founder of DNA Behavioral International, and which is focuses on behavior, money insights. And he has also done a lot of tremendous work in, in his life path. And I’m gonna…
Peptide Therapy: Treating the Root Cause, Not Symptoms – Regan Archibald
Transcript: Alan Olsen Hi, this is Alan Olsen and welcome to American Dreams. My guest today is Reagan Archibald Reagan. Welcome to today’s show. Regan Archibald So good to be here, Alan. Alan Olsen So in your in your life path can you give the listeners your timeline of how you got to where you…
The Modern NFL Quarterback Market, 3 Views
Written by Ryan Hickman. As we approach the NFL draft, the quarterback market remains volatile. Many consider Tom Brady to be the greatest football player of all time. Why? As the starting quarterback for the New England Patriots, Brady led their franchise to 6 super-bowl championships before leaving in the 2020 offseason to Tampa Bay…
Five Keys to a Successful Family Business
The Community Leaders of a Family Business (Five Keys to a Successful Family Business) Written by Ryan Hickman. Family businesses have been an essential component of the global economy for centuries. These companies are often characterized by their tight-knit management structures, long-term perspective, and commitment to preserving family values. However, running a family business can…