SUBSCRIBE
Enter your Name and Email address to get
the newsletter delivered to your inbox.
Please include name of person that directed you to my online tax guide so I can thank them personally.
2021 Tax Planning Guide
Capital Gains Tax
Remember that you pay long-term capital gains taxes on investments held longer than one year, while you pay ordinary income taxes on short-term investment gains. The capital gains tax brackets are based on taxable income, just like the ordinary income tax brackets.
TREATMENT OF LOSSES
A capital gain or loss is the difference between your basis, which is typically the cost of buying an asset or investment, adjusted by certain previous deductions for depreciation and/or depletion, and what you get for selling it. If your investments have a net capital loss, you can deduct up to $3,000 of the loss against your income annually if filing jointly, ($1,500 married filing separately). If your losses exceed these annual limits, you may carry losses forward to future years, deducting up to $3,000 per year against your income until your capital losses are exhausted.A WORD ABOUT DIVIDENDS
Qualified dividends are eligible for more favorable capital gains tax rates, while unqualified dividends are taxed as ordinary income. Generally, dividends from real estate investment trusts (REITs) are unqualified, as are those from credit unions and mutual savings banks.CONTACT US
Enter your Name, Email Address and a short message. We'll respond to you as soon as possible.
Ronald L Tharp, PC and LTM Marketing Specialists LLC are unrelated companies. This publication was prepared for the publication’s provider by LTM Client Marketing, an unrelated third party. Articles are not written or produced by the named representative.
The information and opinions contained in this web site are obtained from sources believed to be reliable, but their accuracy cannot be guaranteed. The publishers assume no responsibility for errors and omissions or for any damages resulting from the use of the published information. This web site is published with the understanding that it does not render legal, accounting, financial, or other professional advice. Whole or partial reproduction of this web site is forbidden without the written permission of the publisher.