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.
Conscious Leadership Institute | Cam Danielson
About Cam Danielson Cam is a partner at MESA Research Group and co-founder and principal at the Conscious Leadership Institute. His work focuses on assisting leaders and management teams to revision future direction and opportunity amid the turbulence of personal, organizational, and societal change. Cam has distinctive competence in delivery of mindfulness workshops, executive…
Authors that Inspire | Jeff Benedict
About Jeff Benedict Jeff Benedict is a distinguished professor of writing and mass media at Southern Virginia University. He is an award-winning investigative journalist, essayist, and a best-selling author. He is a contributing writer for Sports Illustrated, and his work has appeared numerously in the Los Angeles Times, and the Hartford Courant. Benedict’s books…
What’s Your Financial Plan? | Joe McKissack
About Joe McKissack Joe Mckissack has over 14 years of professional experience working in the financial industry as both a financial advisor and financial consultant. He specializes in working with clients of ultra high net worth. Joe received his Bachelor’s of Arts degree at University of California Santa Barbara. Interview Transcript: Alan Welcome back.…
Building a Foundation for Success | Mark Gottfredson
About Mark Gottfredson Mark Gottfredson is a partner of Bain and Company at the Dallas office, the office he founded in 1990. Mark’s client work is primarily focused on full potential programs, revenue enhancement, cost reduction, complexity management and major change programs. Mark is the author of The Breakthrough Imperative book, and has written extensively…