Long term (held for more than 12 months)
capital gains are taxed at a maximum tax rate of:
- 20% if you are in a 28% or higher tax bracket
- 10% if you are in a 15% taxt bracket. You will pay only 10% on
your capital gains until your taxable income reaches the 28% tax bracket, and you will pay
20% on any portion of your capital gains that would normally be taxed at 28%
See Summer 98
Newsletter, page 2, for 1999's tax brackets.
See also Capital Gain Examples, for additional
information regarding tax brackets.