How are capital gains taxed?

[ringmastery]

Are they considered separate to income and only taxed at the capital gains tax rate or are they also considered income and taxed at the marginal income tax rates?

[GOPisEvil]

1. Separately, and taxed as a capital gain. 20%, I think.

Consult your tax professional, though. </disclaimer>

[chrisesq]

2. Seperately

Taxed at different rates than the usual.

Some are around 20%, some are at 28%, some I think are higher.

You should consult a CPA if this is something that you think you need to do.

On edit, long term are taxed at 10-15%, but not all of the time. There are a variety of factors that need to be considered, more reason to see a professional.

[Kolesar]

3. did you try `

www.irs.gov

They actually have a good website with fast servers.

[Raven]

4. VERY good question!

I had always thought that capital gains were taxed at the 20% capital gains rate...by the way, I think it's 15% now. Then a friend of mine who sold her house told me her accountant took her profit on the house (after allowed exclusions, I think)and taxed it at the capital gains rate and then added it to her regular income to be taxed at the regular rate. I couldn't believe that! If you find out the answer, please share it!

[BR_Parkway]

6. There is difference between short term and long term

short term are for profits made on assets that are sold that have been held 6 months or less, long term is for assets held for more than 6 months. Those rates are applied only on those profits, it doesn't get added to your other income.

As for the lady with the house? If she didn't make over a $250,000 profit ($500,000 if she is married) then there is NO tax due, whether she bought another house or not. She needs to get another tax professional.

[Cuban_Liberal]

5. As capital gains, normally (exceptions apply)

Sales price - base/aquisition price (minus depreciation) = net gain/loss.

Most long-term gains are taxed at 20%.. :)

[GumboYaYa]

7. Try this link for a capital gains calculator:

http://www.moneychimp.com/features/capgain.htm. Yes, the name of the site is quite ironic.

CG rates depend upon the holding period for the underlying asset and a few other factors. Generally, if you have held the asset for at least one year, the current CG rate will be 15%. If you hold the asset for less than one year the gain on the sale is either short-term capital gains or ordinary income depending upon the type of asset.

There are additional factors such as whether the investment can be considered an investment in a small business, in which case lower CG rates would apply.

Remember you are taxed on the gain, which is the sales price less the basis in the property. Generally, basis is the amount you paid for the asset less any depreciation, but the rules on calculating basis can be very difficult in some cases.

<ON EDIT> The reduced CG rate did not become effective until May 2003. If the asset was sold prior to May, the rate is probably 20%.

[papau]

8. 20% is usual rate - but there are many rules

If you are in the 10% or 15% bracket, the rate is 10%

If you have a qualified 5 year gain, excluding collectibles gain and Sectio 1250 and 1202 gain, the rate drops on that gain to 8% and 18% corresponding to the 10% and 20% above.

Short term gain has no special basis - just regular income

Collectibles and 1202 gain remain at 28%

1250 gain is at 25%

within each category, gains and losses are netted

holding period for long term is usually one year

the home exemption is as stated by previous poster

[southerngirlwriter]

9. You might try sending a PM to ZombyWoof

He's a tax professional. (Woofie, sorry to volunteer you -- didn't think you'd mind.)