Insights

7/18/2018

Understanding the Changes to the Capital Gains Rates

Long–term gains (investments held for more than a year) still get favorable treatment, but the calculation has changed.  Your Capital Gains Tax Rate is now tied to income thresholds, adjusted annually for inflation.

Starting in 2018, the 0% rate applies to taxpayers with taxable income under $28,600 (single returns) and $77,200 (joint returns).  The 20% rate starts at $425,800 (single returns) and $479,000 (joint returns).  The 15% rate is for taxpayers with taxable incomes between the 0% and 20% break points.

Contact us with any questions you might have.