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.

Posted in

The Man That Helps People Live their Financial Dreams with Comedy – Charlie Epstein, Host of Yield of Dreams

Transcript: Charlie Epstein My ministry in life is to ease people’s pain and suffering about their money and make money funny. They go. So I’m blessed that I’ve found this vehicle, the show that I created called yield the dreams where I get to entertain people live on stage. Or if you download the version…

Finding Infinite Freedom with Eric Francom

Transcript: Eric Francom A lot of people invest in stocks and bonds and retail products, but they don’t get into the part of a portfolio that tends to make the most money for the ultra wealthy and the Yale endowment funds the successful endowment fund. So it’s nice to have the really tried to help…

The Man Bulks Up Owner Managers For Exits – Pete Worrell, Co-CEO & Managing Director of Bigelow LLC

Transcript: Pete Worrell My interest was all about how, owner managers flourish and thrive. And I’ll just give you a teensy bit of a complication, which you pointed it out. Many times these people have spent their lives in a domain, building an organization, they love the people, they love what they do. They know…

Journey of a Tech Entrepreneur with Jack Liang, Founder of Coral Global

Transcript: Jack Liang I was running ads since college and one of my ads for my restaurants have like, over 100,000 impressions with just $50. And I went in to speak to their team on how I was able to accomplish. So after that they wanted to recruit me. And Harvey work on the Instagram…